EUR/USD Price Analysis: Attracts some sellers below 1.0470 amid the oversold condition
|- EUR/USD loses traction below the 1.0500 psychological mark on Tuesday.
- The major pair holds below the 50- and 100-hour EMAs on the four-hour chart amid the oversold RSI condition.
- The key support level is seen at 1.0400; the immediate resistance level will emerge at 1.0577.
The EUR/USD pair extends its downside around 1.0465 after breaking below the 1.0500 mark during the Asian trading hours on Tuesday. The downtick of the major pair to the fresh year-to-date (YTD) lows is supported by the stronger US Dollar (USD) broadly and the sign of ending the rate hike cycle by the European Central Bank (ECB).
According to the four-hour chart, EUR/USD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope, which means the path of least resistance for the pair is to the downside. The Relative Strength Index (RSI) holds in bearish territory below 50. However, the oversold condition indicates that further consolidation cannot be ruled out before positioning for any near-term EUR/USD depreciation.
That said, any decisive follow-through selling below the lower limit of the Bollinger Band at 1.0465 will see a drop to a psychological round figure at 1.0400. The next contention is located near a low of September 25 at 1.0355. Further south, the next stop of the major pair is seen at 1.0320 (a low of November 29).
On the upside, the immediate resistance level for EUR/USD will emerge near the 50-hour EMA at 1.0577. The critical barrier to watch is the confluence of the upper boundary of the Bollinger Band and the 100-hour EMA at 1.0630. The additional upside filter is seen at 1.0670 (a high of September 22), followed by a psychological figure at 1.0700.
EUR/USD four-hour chart
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