Technical Analysis EUR/USD for 8/25/15

The EUR/USD soared to fresh 2015 highs surging as investors moved out of the U.S. dollar convinced that the Federal Reserve is now on hold until at least December of 2015.  The dollar also lost ground against the Yen as investors looked for a safe haven asset in the midst of the capital markets carnage.

The EUR/USD currency pair is poised to test resistance near the 2015 highs at 1.1870. Support on the currency pair is seen near the recent breakout level at 1.1466.  Additional support is seen near the 10-day moving average at 1.1190.  Momentum on the currency pair remains positive with the MACD (moving average convergence divergence) index printing in positive territory with an upward sloping trajectory.  The one caveat is that the RSI (relative strength index) is printing a reading of 75, above the overbought trigger level of 70, which could foreshadow a correction.