Technical correction in the offing?

• EUR/USD fades the earlier uptick to the 1.1270 zone.
• Extreme overbought condition might prompt a correction.

EUR/USD retreats from earlier YTD peaks around 1.1275 on Tuesday.

While the continuation of the upside momentum appears favoured in the very near term, the pair’s current overbought conditions (as per the day-to-day RSI near 75) might spark a corrective knee-jerk.

Further north of the 2023 top at 1.1275 (July 18), the pair is expected to meet the next resistance level of note at the 2022 high of 1.1495 recorded on February 10.

Looking at the longer run, the positive view remains unchanged while above the 200-day SMA, today at 1.0666.

EUR/USD daily chart