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EUR/USD RSI Inches Toward Overbought

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  • Greenback weakness persists through the London close, with the latest leg higher in EUR/USD putting the pair clear of 1.0850 to touch the best levels since Sep 1st. The 50% retracement of the Jul 18 - Oct 3 bear leg is providing scant resistance at 1.0862, but clearance here would open 1.0882 for direction.
  • The EUR/USD RSI is now narrowing in on 70 and levels that would class the pair as technically overbought - this would make for the first technically overbought reading since mid-July - a signal that was quickly followed by a >2% pull lower over the subsequent six or so sessions.

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