EUR/USD Price Analysis: 1.1700 challenges bears amid oversold RSI
- EUR/USD consolidates recent losses around the yearly low.
- Sustained trading below multiple resistance lines, the key Fibonacci retracement keeps sellers hopeful.
- Break of 1.1700 will buoy bears, 200-DMA adds to the upside filters.
EUR/USD defends the 1.1700 threshold, mostly unchanged around 1.1720, during the initial Asian session on Wednesday.
The major currency pair dropped to the fresh low since March 31, also the yearly bottom, extending the fall below July’s bottom. However, a horizontal line comprising the 2021 trough questions further downside amid oversold RSI conditions.
It should be noted, however, that the corrective pullback needs to cross the immediate horizontal hurdle surrounding 1.1760 to revisit the 1.1800 round figure.
Even so, a downward sloping trend line from June 01, near 1.1890, will be challenging the EUR/USD buyers. It’s worth observing that a convergence of a descending trend line from June 25 and 61.8% Fibonacci retracement level of November 2020 to January 2021 upside, near 1.1890, followed by the 1.1900 psychological magnet, will be tough nuts to crack for the bulls afterward.
Meanwhile, a daily closing below 1.1700 will not hesitate to portray a 100-pip fall targeting the late 2020 lows close to 1.1600.
EUR/USD: Daily chart
Trend: Corrective pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
