The US Dollar Index (DXY) has officially reached overbought conditions according to the daily Relative Strength Indicator (RSI). The 80 threshold was cleared for only the second time this year. While there is a lack of daily bearish divergence, the greenback may be vulnerable for a pullback. An hourly rising wedge formation and bearish hourly diverging studies also hint of a period of consolidation before reaching the targeted 82 region.
The EUR/USD broke below the key 50% retracement at 1.3075 to shift focus towards an equality target at 1.2940. Bullish diverging hourly studies hint of a possible retest of 1.3075 before eventually targeting the 61.8% retracement level near the 1.28 handle. Meanwhile, this pair remains structurally bearish while price-action remains capped by last week's low at 1.32.
