- EUR/USD fades bounce off 16-month low, struggles to justify bullish candlestick formation.
- Oversold RSI conditions, multiple supports challenge further downside.
- Previous support line from October, 10-DMA will test corrective pullback.
EUR/USD remains pressured around the lowest level since July 2020, lackluster near 1.1445 during Monday’s initial Asian session. In doing so, the major currency pair struggles to justify the previous day’s Doji candlestick formation suggesting a corrective pullback.
Even so, nearly oversold RSI conditions and multiple supports to the downside keep EUR/USD buyers hopeful to challenge the support-turned-resistance line from October, near 1.1485.
Should the quote’s anticipated rebound crosses the 1.1485 hurdle, the 10-DMA figure of 1.1517 will test the pair buyers ahead of directing them to the monthly high near 1.1620.
It’s worth noting that the EUR/USD bulls will remain doubtful until witnessing a clear break of October’s high around 1.1695.
Meanwhile, the further downside will aim for the previous day’s low of 1.1432, a break of which will direct EUR/USD towards the June 2020 top, surrounding 1.1422.
In a case where the pair remains weak past 1.1422, a descending support line from June, near 1.1410 and the 1.1400 threshold will be in the spotlight.
To sum up, EUR/USD bears seem to be tired and Friday’s Doji may trigger the much-awaited rebound considering RSI conditions. However, multiple hurdles do challenge the bull’s entry.
EUR/USD: Daily chart
Trend: Corrective pullback expected
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