Technically, the pair has not been this oversold daily basis, since late January this year, when it fell briefly below 1.1200 before recovering above 1.1500. That means the pair has still room to go further lower, despite trading 300 points lower. The Momentum indicator in the same time frame heads strongly south deep into the red whilst as commented on previous weekly updates, moving averages are too far away to become relevant at this point. The weekly chart presents a quite similar picture, with the RSI resuming the downside after failing to overcome the 30 level, while the Momentum indicator also presents a sharp bearish slope. Overall additional declines should be expected, and spikes will be now seen as opportunities to sell.
The next critical support, is the 1.0760 price zone, where the pair has a couple of monthly lows, back from 2003. Should the decline extend below it, the 1.0600 level comes next. To the upside, the critical resistance comes now at 1.1000, with sellers probably surging up to the 1.1060 price zone. A recovery above this last, quite unlikely at this point but not impossible, may see the pair correcting as high as 1.1250, without actually harming the bearish dominant trend.
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