EUR/USD sinks: Is a pivot point nearby?

Christina Parthenidou XM

Overview: EUR/USD fell sharply on Monday to a 17-month low of 1.1160, kicking off its fifth consecutive week of losses and dropping nearly 4% since the rejection near 1.1600. Although an extended sell-off heightens speculation of a rebound, the resumption of lower lows and lower highs in the medium-term picture limits hopes for a bullish trend reversal.

Momentum: The RSI and stochastic oscillator flag oversold conditions, while the MACD tests its March low in negative territory, hinting that a pivot point may be approaching.

Bullish scenario: Buying interest could emerge near 1.1117, aligning with the 50% Fibonacci retracement of the 2024–2025 uptrend. A recovery above 1.1230 could target 1.1358-1.1400, where the 20-day SMA converges.

Risk: A break below 1.1030 risks triggering fresh selling pressure.

Author

Christina Parthenidou

Christina joined Trading Point in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

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