EURTRY reached another all-time high of 5.1931 today, posting the ninth consecutive bullish day. Over the last couple of days, the pair is posting new highs with aggressive mode and is trading well above its moving averages. The bullish picture in the medium-term is further supported by the MACD, which is rising above its red trigger line.
Short-term momentum indicators are also pointing to a continuation of the bullish bias. The RSI indicator is well above the 70-overbought level at 83, suggesting that the strong upside movement may come to an end. However, the index is still sloping to the upside.
Further gains could see a fresh high towards the 423.6% Fibonacci retracement level of 5.5000 of the small retracement from 4.7185 to 4.4760.
In the event of a downside reversal in the next days, support could come from the 23.6% Fibonacci retracement level around 4.8700 of the upleg from 3.7660 to 5.1931. A penetration of this level could shift the short-term bullish outlook to neutral as it would take the pair near the 40-day SMA of 4.8065 at the time of writing.