EUR/USD: Upside momentum but tough resistance at 1.1850 caps

EUR/USD is posting modest gains in the 1.1840 region while Thursday's 4-hour chart is showing that the pair is capped under stubborn resistance at 1.1850 but has upside momentum, FXStreet’s analyst Yohay Elam reports.

Key quotes

“EUR/USD is capped under the crucial resistance line of 1.1850, which held it down in recent days and also converges with the 50 Simple Moving Average on the 4-hour chart. On the other hand, momentum has turned positive and EUR/USD trades above the 100 and 200 SMAs.”

“Beyond 1.1850, the next target is 1.1875, a swing high on the way down, followed by the early August peak of 1.1915 and the two-year high of 1.1965.”

“Support awaits at 1.18, a round level that provided support last week. It is followed by 1.1750, the previous week's trough, followed by 1.17, a double-bottom.”