EUR/USD Technical Analysis: At 3-week highs, minor pullback likely before further gains

The EUR/USD pair is currently trading at 1.1508 – the highest level since Jan. 11 – on the back of dovish Fed and could rise further toward the Jan. 10 high of 1.1570, albeit after a minor pullback, as the short duration charts are reporting overbought conditions. 

Hourly chart

• As seen above, the RSI is holding in overbought territory above 70.0, validating bull exhaustion signaled by the long upper shadows attached to the previous two hourly candles. 

15-min chart

• The RSI on the 15-min chart is not confirming higher highs seen in EUR/USD. Put simply, the indicator has diverged in favor of the bears. The pair, therefore, could fall back to 1.1480 before resuming the post-Fed rally. 

Trend: Bullish but minor pullback likely