Hourly charts on EURUSD suggest a pullback is likely as the move of nearly four hundred pips in less than two days lifts RSI into overbought territory. The currency is also approaching a key fibonacci retracement at 1.423. Previous entries above 70 have often resulted in the euro falling from the top of an upper channel that began in April. The pair may pull back at least 100 pips following a range of nearly four hundred pips in the past two days toward the previous high set last Friday at 1.4049. Long term direction however seems to indicate further strength for the euro as risk appetite remains high and optimism floods investors out of dollars and US treasury bonds.
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