EUR/USD Price Analysis: Single currency has erased more than 75% of its recent rally

EUR/USD fell to 1.10955 on Tuesday, erasing 76% of the recent rally.
Tuesday's big red candle indicates scope for deeper losses.

Omkar Godbole FXStreet Contributor

EUR/USD has erased a significant chunk of the recent rally and looks set for a deeper drop in the short-term.

The pair is currently trading just above 1.10, having hit a low of 1.0955 on Tuesday. At that level, nearly 76% of the rally from 1.0778 to 1.1495 witnessed in the 12 days to March 3 stood erased.

From a technical perspective, the market sentiment looks to have turned quite bearish. The pair produced a big red candle on Tuesday with small wicks - a sign the sellers were in control from the UTC open to UTC close.

The spot also closed under 1.1052 on Tuesday, violating the 61.8% Fibonacci retracement of the rally from 1.0788 to 1.1495. The pair has also found acceptance under the 200-day average, currently located at 1.1097.

Meanwhile, the 14-day relative strength index (RSI) has dropped into the bearish territory below 50.

All in all, the odds appear stacked in favor of a slide to 1.09, under which major support is seen directly at 1.0778.

On the higher side, a close above Tuesday's high of 1.1189 is needed to put the bulls back into the driver's seat.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1006
Today Daily Change	0.0008
Today Daily Change %	0.07
Today daily open	1.0998

Trends
Daily SMA20	1.1078
Daily SMA50	1.1042
Daily SMA100	1.1069
Daily SMA200	1.1098

Levels
Previous Daily High	1.1189
Previous Daily Low	1.0955
Previous Weekly High	1.1497
Previous Weekly Low	1.1055
Previous Monthly High	1.1089
Previous Monthly Low	1.0778
Daily Fibonacci 38.2%	1.1044
Daily Fibonacci 61.8%	1.11
Daily Pivot Point S1	1.0905
Daily Pivot Point S2	1.0813
Daily Pivot Point S3	1.0671
Daily Pivot Point R1	1.114
Daily Pivot Point R2	1.1282
Daily Pivot Point R3	1.1374

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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