EUR/USD technical analysis: Oversold RSI may again respect 4-week old support-line
|- Failure to rise past-1.1285/87 drags the EUR/USD pair towards near-term support-line.
- Oversold RSI conditions can trigger pullback towards 61.8% Fibonacci retracement.
Not only its U-turn from 1.1285/87 horizontal-line but a dip beneath 61.8% Fibonacci retracement of May-June increase also portrays the EUR/USD pair’s latest downpour that presently prints 1.1208 during the early Asian session on Wednesday.
Considering oversold conditions of 14-bar relative strength index (RSI), an upward sloping trend-line since June 18, at 1.1197, can trigger the pair’s U-turn, if not then sellers can aim for late-June low surrounding 1.1180.
In a case where bears dominate past-1.1180, May month bottom around 1.1110 could become their favorite.
Alternatively, 61.8% Fibonacci retracement level of 1.1224 acts as an immediate upside barrier to watch during the pair’s recovery, a break of which can escalate the moves to 1.1240 and then towards 1.1285/87 horizontal-line.
It should also be noted that the quote’s run-up above 1.1287 enables it to question 1.1345 comprising 23.6% Fibonacci retracement.
EUR/USD 4-hour chart
Trend: Pullback expected
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