- EUR/USD fades bounces off 20-year low inside monthly falling channel.
- 61.8% FE, previous support from mid-May appear key hurdles for recovery.
- Oversold RSI may test bears around the channel’s support.
EUR/USD remains pressured around the lowest levels since December 2002, flashed the previous day, as bears flirt with 1.0260 during Wednesday’s Asian session.
The major currency pair slumped the most since March 2020 the previous day after breaking the horizontal area comprising the previous yearly low, around 1.0360-50. However, the quote’s rebound from 1.0235 portrayed a one-month-old bearish channel on the chart.
That said, the EUR/USD pair’s latest pullback marks the failure to cross the 61.8% Fibonacci Expansion (FE) of the March-May moves, around 1.0280.
Even if the pair manage to cross the 1.0280 level, it needs validation from the 1.0360 to convince buyers.
Even so, the 10-day EMA and upper line of the stated channel, respectively near 1.0415 and 1.0525, could challenge the EUR/USD buyers.
On the flip side, the aforementioned channel’s lower line, at 1.0225 by the press time, could join the oversold RSI conditions to limit the EUR/USD pair’s immediate declines.
Following that, the 78.6% FE level near 1.0130 could act as a buffer before directing the quote towards the 1.0000 psychological magnet.
EUR/USD: Daily chart
Trend: Limited downside expected
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