EUR/USD Price Analysis: Immediate rectangle, oversold RSI test bears around mid-1.0200s

EUR/USD remains pressured around the lowest levels since late 2002.
Oversold RSI, rectangle formation limit the pair’s immediate moves.
20-HMA guards immediate rebound, previous support, 100-HMA challenge intraday bulls.

Anil Panchal FXStreet

EUR/USD bears take a breather around almost 20 years even if traders flirt with the 1.0250 heading into Wednesday’s European session. It’s worth noting that the quote slumped the most since March 2020 the previous day after breaking a two-week-old support line.

That said, the major currency pair stays inside an immediate rectangle formation between 1.0275 and 1.0230.

The oversold RSI (14) and the market’s anxiety ahead of today’s Federal Open Market Committee (FOMC) Minutes and the US ISM Services PMI for June, expected 54.5 versus 55.9 prior, also restrict immediate EUR/USD moves.

Hence, a corrective pullback is on the cards even if the 20-HMA level surrounding 1.0265 restricts the pair’s nearby upside.

It’s worth noting that the EUR/USD run-up beyond 1.0275, comprising the stated rectangle’s resistance line, needs validation from the previous support line from June 22 and the 100-HMA, respectively near 1.0330 and 1.0400.

Meanwhile, a downside break of the 1.0230 could aim for the July 2002 high near 1.0200.

Following that the 1.0100 level might act as an intermediate halt during the slump targeting the 1.0000 psychological magnet.

EUR/USD: Hourly chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.0251
Today Daily Change	-0.0020
Today Daily Change %	-0.19%
Today daily open	1.0271

Trends
Daily SMA20	1.0501
Daily SMA50	1.0559
Daily SMA100	1.0782
Daily SMA200	1.1094

Levels
Previous Daily High	1.0449
Previous Daily Low	1.0235
Previous Weekly High	1.0615
Previous Weekly Low	1.0366
Previous Monthly High	1.0774
Previous Monthly Low	1.0359
Daily Fibonacci 38.2%	1.0317
Daily Fibonacci 61.8%	1.0367
Daily Pivot Point S1	1.0188
Daily Pivot Point S2	1.0105
Daily Pivot Point S3	0.9974
Daily Pivot Point R1	1.0402
Daily Pivot Point R2	1.0532
Daily Pivot Point R3	1.0615

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.

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