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EUR/USD Breaks June's High

EUR/USD has been consolidating in June after a decline in May roughly from 1.3990 to 1.3505. Today, the last day of the month, traders pushed EUR/USD above June's consolidation high of 1.3676 to test the 1.37 handle. In the 4H chart, EUR/USD looks like it has formed a base, and is ready for a bullish scenario.


(eurusd 4h chart, 6/30)

The 4H RSI reflects overbought condition in this time-frame. If we get a pullback, watch the rising trendline, and 1.36, which is where we also have the moving averages in the 4H chart clustered. If traders buy EUR/USD and keep it north of 1.36, we are likely reviving a bullish outlook toward the year's highs just below 1.40. 

However, a break below 1.3575 is likely a sign that the market still wants to test the 2014-low at 1.3476.