- EUR/USD holds lower ground near the 20-year bottom, sidelined of late.
- Oversold RSI tests bears around January 2001 peak.
- Bearish MACD signals, clear break of previous support from July keep sellers hopeful.
- Six-month-old descending trend channel stays in focus amid risk-off mood, energy crisis in Europe.
EUR/USD flirts with the 0.9600 threshold after a six-day downtrend that refreshed the 20-year low. Even so, the major currency pair remains inside a bearish chart pattern and keeps the sellers hopeful during Wednesday’s Asian session.
That said, the six-week-old downward sloping trend channel joins the sour sentiment and challenges for the eurozone, in terms of the energy crisis, to weigh on the prices. Also keeping the sellers hopeful are the bearish MACD signals.
Also read: EUR/USD braces for fresh multi-year low around 0.9600, ECB’s Lagarde, Fed’s Powell eyed
However, the oversold RSI (14) seems to challenge the EUR/USD bears around the early 2001 peak surrounding 0.9600.
Hence, the EUR/USD bears await sustained trading below 0.9600 to renew the multi-year low, currently around 0.9550. In doing so, the stated channel’s support line near 0.9465 will be in focus.
Alternatively, recovery moves remain elusive unless the price rises back beyond the previous support line from July 14, close to 0.9830 at the latest.
Even if the EUR/USD pair crosses the 0.9830 hurdle, it needs to pass through the upper line of the bearish channel, at 1.0025 to recall the buyers.
EUR/USD: Daily chart
Trend: Further downside expected
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