- Declining 20- and 50-period EMAs add to the downside filters.
- The RSI (14) has shifted into the bearish range of 20.00-40.00.
- EUR/USD may re-test June’s low after violating the critical support of 1.0433.
The EUR/USD pair has displayed a poor rebound after hitting a low of 1.0433 in the Asian session. The asset is attempting to sustain above 1.0450. However, the overall trend is bearish as the asset surrendered its psychological support of 1.0500 on Wednesday.
The shared currency bulls are attempting to defend the two-week-old crucial support of 1.0444, recorded on June 17. The trendline placed from Tuesday’s high at 1.0606 will act as a major resistance for the eurozone bulls.
The 20- and 50-period Exponential Moving Averages (EMAs) at 1.0463 and 1.0494 respectively are declining, which adds to the downside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more downside ahead. Investors should not initiate aggressive shorts now as the RSI (14) is attempting to 40.00, which may turn the asset sideways.
The greenback bulls could strengthen further if the asset drops below Thursday’s low at 1.0433. An occurrence of the same will drag the asset towards June 14 low at 1.0397. A slippage below June 14 low will expose the asset to more downside levels of the Jun 15 low at 1.0359.
On the flip side, a decisive move above June 22 low at 1.0469 will drive the asset towards Wednesday’s high at 1.0535, followed by Tuesday’s high at 1.0606.
EUR/USD hourly chart
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