EUR/USD: Another massive crash is likely
|EUR/USD's 100-pip rise from the lows seems like another ‘dead cat bounce’ as volatility remains elevated. Friday's four-hour chart is pointing to a resumption of the downturn, in the opinion of Yohay Elam from FXStreet.
Key quotes
“EUR/USD is suffering from downside momentum on the four-hour chart and trades below the 50, 100, and 200 Simple Moving Averages – all bearish signs.”
“Moreover, the recent bounce has pushed the Relative Strength Index above 30 – outside oversold conditions and allowing for more falls.”
“Some support awaits at 1.0720, a support line from 2017. The recent low of 1.0652 is the next level to watch.”
“Resistance awaits at 1.0855, a cap from February, and then by 1.0975, a swing high from earlier this week.”
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