EUR/USD Price Analysis: The next contention level is seen at 1.0720, oversold RSI condition eyed

EUR/USD faces some sell-off around 1.0730 in Tuesday’s early European session.
The major pair holds below the key EMA with an oversold RSI condition.
The first downside target is located at 1.0720; the 1.0800–1.0805 region acts as an immediate resistance level.

Lallalit Srijandorn FXStreet

The EUR/USD pair extends its downside to 1.0730, the weekly low during the early European session on Tuesday. The upbeat US ISM Manufacturing PMI for March lifts the US Dollar (USD) and drags the EUR/USD pair lower. Investors will take more cues from Fedspeak later on Tuesday, including Michelle Bowman, Loretta Mester, John Williams, and Mary Daly.

Technically, EUR/USD maintains the bearish outlook unchanged as the major pair is below the 50- and 100-period Exponential Moving Average (EMA) on the four-hour chart, which means the path of least resistance level is to the downside. It’s worth noting that the Relative Strength Index (RSI) holds in bearish territory around 28. However, the oversold RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term EUR/USD depreciation.

The key contention level will emerge near the confluence of the lower limit of the Bollinger Band and a low of February 13 at 1.0720. Any follow-through selling below the latter will see a drop to a low of November 9, 2023, at 1.0660, followed by a low of November 2, 2023, at 1.0565.

On the upside, the 50-period EMA and a high of March 29 at the 1.0800-1.0805 zone act as an immediate resistance level for EUR/USD. The additional upside filter to watch is the 100-period EMA at 1.0822. The next hurdle is seen near a high of March 26 at 1.0864.

EUR/USD four-hour chart

EUR/USD

Overview
Today last price	1.0729
Today Daily Change	-0.0014
Today Daily Change %	-0.13
Today daily open	1.0743

Trends
Daily SMA20	1.0868
Daily SMA50	1.0832
Daily SMA100	1.0877
Daily SMA200	1.0835

Levels
Previous Daily High	1.0799
Previous Daily Low	1.0731
Previous Weekly High	1.0864
Previous Weekly Low	1.0768
Previous Monthly High	1.0981
Previous Monthly Low	1.0768
Daily Fibonacci 38.2%	1.0757
Daily Fibonacci 61.8%	1.0773
Daily Pivot Point S1	1.0717
Daily Pivot Point S2	1.069
Daily Pivot Point S3	1.0649
Daily Pivot Point R1	1.0784
Daily Pivot Point R2	1.0826
Daily Pivot Point R3	1.0852

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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