EUR/USD Price Analysis: Single currency has erased more than 75% of its recent rally
|- EUR/USD fell to 1.10955 on Tuesday, erasing 76% of the recent rally.
- Tuesday's big red candle indicates scope for deeper losses.
EUR/USD has erased a significant chunk of the recent rally and looks set for a deeper drop in the short-term.
The pair is currently trading just above 1.10, having hit a low of 1.0955 on Tuesday. At that level, nearly 76% of the rally from 1.0778 to 1.1495 witnessed in the 12 days to March 3 stood erased.
From a technical perspective, the market sentiment looks to have turned quite bearish. The pair produced a big red candle on Tuesday with small wicks - a sign the sellers were in control from the UTC open to UTC close.
The spot also closed under 1.1052 on Tuesday, violating the 61.8% Fibonacci retracement of the rally from 1.0788 to 1.1495. The pair has also found acceptance under the 200-day average, currently located at 1.1097.
Meanwhile, the 14-day relative strength index (RSI) has dropped into the bearish territory below 50.
All in all, the odds appear stacked in favor of a slide to 1.09, under which major support is seen directly at 1.0778.
On the higher side, a close above Tuesday's high of 1.1189 is needed to put the bulls back into the driver's seat.
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.