EUR/USD: Bullish corrective movement
|The EUR/USD pair has hovered around 1.0800 for the last three trading days, although weak US PMI have helped it trim weekly losses, now trading at around 1.0840. EUR/USD extreme oversold conditions point to a bullish corrective advance, according to Valeria Bednarik from FXStreet.
Key quotes
“The weekly chart shows that the pair remains far below all of its moving averages, while technical indicators lost strength downward, but remain well into negative territory, suggesting that in the long-term, the risk remains skewed to the downside.”
“In the daily chart, the pair is barely correcting extreme oversold conditions, as it’s trading roughly 60 pips above its 2020 low after losing 320 pips pretty much straight.”
“Technical indicators have moved out extreme oversold territory for the first time in over a week, but remain well below their midlines. The 20 DMA maintains its bearish slope at around 1.0940 while holding below the larger ones.”
“For the upcoming days, 1.0900 is the immediate resistance ahead of the mentioned 20 DMA. 1.0770 is immediate support.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.