• The Euro reached a seven-month high but cut some of its gains, up by 0.92%.
• A daily close above 1.0600 could pave the way for the EUR/USD toward 1.0700.
• EUR/USD: Break below 1.0600 could exacerbate a fall to 1.0500.

The EUR/USD hit a seven-month high at around 1.0673, but although it remains positive, it trimmed some of its earlier gains late in the New York session. Hence, the EUR/USD is trading at 1.0631, above its opening price by 0.89%, at the time of writing.

EUR/USD Price Analysis: Technical outlook

Tuesday’s price action depicts the EUR/USD trading at multi-month highs, punching through the 24-month-old downslope resistance trendline, broken around 1.0593, exacerbating a rally above the psychological 1.0600 mark. Additionally, the Euro is trading at around the 2020 lows, at 1.0635, which, once cleared, could open the door for a test of the 1.0700 mark.

The Relative Strength Index (RSI) is in bullish territory, about to enter the overbought region. Meanwhile, the Rate of Change (RoC) depicts that buying pressure is fading. Therefore, mixed signals suggest consolidation around the 1.0600-1.0630 area. A daily close above 1.0600 could exacerbate a rally toward 1.077, but it would depend on Wednesday’s Federal Reserve monetary policy meeting.

EUR/USD key resistance levels lie at 1.0673, followed by the psychological 1.0700 figure, followed by the May 30 swing high at around 1.0786. On the flip side, the EUR/USD first support would be the 1.0600 mark. Break below will expose the December 13 low of 1.0528, followed by the 1.0500 figure.

EUR/USD Key Technical Levels