EUR/USD Price Analysis: Bearish spinning top, overbought RSI direct Euro sellers toward 1.0900
- EUR/USD extends previous day’s pullback from five-week high, stays pressured of late.
- Bearish candlestick formation, overbought RSI suggests further downside toward multi-day-old horizontal support.
- Bullish MACD signals, 50-DMA can challenge Euro bears past 1.0900.
- Euro buyers need validation from 1.0960 to retake control.
EUR/USD takes offers to reverse the late Friday’s corrective bounce, as well as the week-start inaction, as it justifies the previous day’s bearish candlestick formation amid overbought RSI conditions on early Monday in Europe. That said, the Euro pair renews its intraday low near 1.0930 while extending earlier pullback from the highest levels in five weeks.
It’s worth noting that the Juneteenth holiday in the US also joins the bearish spinning top candlestick on the daily chart of the EUR/USD pair and the overbought RSI (14) line to please the Euro bears of late.
With this, the quote appears all set to decline towards a nine-week-old horizontal support zone surrounding 1.0910-900.
However, the bullish MACD signals and the 50-DMA support of around 1.0880 can challenge the EUR/USD bears afterward.
In a case where the Euro pair drops below 1.0880, the odds of witnessing a slump towards the 50% and 61.8% Fibonacci retracement of its March-April run-up, respectively near 1.0800 and 1.0735, can’t be ruled out.
On the flip side, a daily closing beyond the 23.6% Fibonacci retracement of near 1.0960 and the previous day’s peak of around 1.0970 restrict the short-term EUR/USD upside.
Following that, multiple tops marked around 1.1000 can challenge the Euro bulls before directing them to the March 2022 high close to 1. 1185.
EUR/USD: Daily chart
Trend: Limited downside 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.
