• EUR/USD traded around the 1.0900 mark after the European trading day, pushing its recent gains further.
• After taking a breather on Monday, the pair jumped by over 0.70%, nearing its highest point since November 2024.
• Technical indicators still suggest overbought conditions, hinting that the upward momentum might be running out of steam, particularly with important resistance levels ahead.

The EUR/USD pair found renewed buying interest on Tuesday afternoon in Europe, managing to climb above the 1.0900 level and continue its strong climb. After pausing for breath on Monday, buyers stepped back in, fueling a rally of more than 0.70%. The pair is now flirting with its highest levels since November 2024, as bullish sentiment firmly grips the market.

Looking at the technical picture, the Relative Strength Index (RSI) has climbed even deeper into overbought territory, with a sharp rise indicating strong buying enthusiasm. Meanwhile, the Moving Average Convergence Divergence (MACD) keeps showing green bars that are getting taller, confirming sustained bullish momentum. However, these overbought readings suggest we might see a pullback if buyers decide it’s time to take profits.

Considering important price levels, immediate resistance is now seen close to the 1.0930 area. If this level breaks, it could pave the way for a move towards the 1.0970-1.1000 zone. Looking below, support is lining up around 1.0850, followed by the key psychological level of 1.0800, where the 200-day Simple Moving Average (SMA) is also located.

EUR/USD daily chart