EUR/USD Price Analysis: Euro hits lowest since November 2020
|EUR/USD clocked a low of 1.1835 a few minutes before press time. That was the lowest level in four months.
The 14-day Relative Strength Index (RSI) has dropped below 30, indicating oversold conditions for the first since February 2020.
However, the indicator needs validation from the price chart, which is currently showing no signs of bear fatigue. Two of the four red candles created over the past four trading days have little or no wicks. It indicates the sellers are in control.
Also, the downward momentum looks strong with the 5- and 10-day Simple Moving Averages (SMA) trending south.
The pair appears set to test the 200-day SMA, currently at 1.1816. A violation there would expose 1.1695, which is the 38.2% Fibonacci retracement of the rally from 1.0636 to 1.2349.
The hourly chart shows a bullish divergence of the RSI. As such, a minor bounce may be seen before a drop to the 200-day SMA.
Daily chart
Trend: Bearish
Technical levels
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.