- EUR/USD has dropped to the levels last seen in April 2017.
- The weekly candle indicate the path of least resistance is to the downside.
- Short-term oversold conditions suggest scope for a corrective bounce.
EUR/USD breached support at 1.0839 a few minutes before press time and fell to 1.0827, the lowest levels since April 2017.
The bearish trend looks quite strong with the weekly candle carrying little or no wicks, similar to last week's big bearish "marubozu" candle.
That said, the 14-day relative strength index (RSI) is now reporting oversold conditions and the hourly chart RSI is printing higher lows, contradicting lower lows on price (bullish divergence).
As a result, a corrective bounce may be seen before further declines toward levels below 1.08.
An oversold bounce, if any, could challenge the former hourly chart support-turned-resistance of 1.0865, above which the focus would shift to the descending or bearish 50-hour average at 1.0880.
|Today last price||1.0836|
|Today Daily Change||-0.0005|
|Today Daily Change %||-0.05|
|Today daily open||1.0841|
|Previous Daily High||1.0889|
|Previous Daily Low||1.0834|
|Previous Weekly High||1.1089|
|Previous Weekly Low||1.0942|
|Previous Monthly High||1.1225|
|Previous Monthly Low||1.0992|
|Daily Fibonacci 38.2%||1.0855|
|Daily Fibonacci 61.8%||1.0868|
|Daily Pivot Point S1||1.0821|
|Daily Pivot Point S2||1.08|
|Daily Pivot Point S3||1.0766|
|Daily Pivot Point R1||1.0875|
|Daily Pivot Point R2||1.091|
|Daily Pivot Point R3||1.093|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.