- An intense sell-off is expected to be followed by a pullback to near the 20-EMA.
- The RSI (14) is hovering in a bearish range of 20.00-40.00, which adds to the downside filters.
- The asset is likely to print a fresh 19-year low after violating Thursday’s low at 1.0356.
The EUR/USD pair is advancing higher at a nominal pace after printing a low of 1.0355 on Thursday. The asset has extended its losses after witnessing a downside break of a tad wider consolidation placed in a range of 1.0471-1.0642 from April’s last week. In the Asian session, the asset is oscillating in an extremely narrow range of 1.0375-1.0384, which is likely to be followed by a firmer volatility expansion.
On the hourly scale, the shared currency bulls have been through an extreme sell-off after breaking below May’s range of 1.0471-1.0642. This will be followed by a minor bullish pullback to near the 20-period Exponential Moving Average (EMA) at 1.0418 as initiative sellers will kick in. The 50-EMA at 1.0460 is declining sharply, which adds to the downside filters.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bearish range of 20.00-40.00, which signals more pain ahead.
A pullback move to near the 20-EMA at 1.0418 will trigger an initiative selling action that will drag the asset towards Thursday’s low at 1.0356, followed by the round level support at 1.0300.
On the flip side, euro bulls could regain control if the asset oversteps May 6 high at 1.0600, which will drive the asset higher towards May 5 high and April 25 low at 1.0642 and 1.0700 respectively.
EUR/USD hourly chart
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