EUR/USD technical analysis: Oversold RSI may again respect 4-week old support-line

Failure to rise past-1.1285/87 drags the EUR/USD pair towards near-term support-line.
Oversold RSI conditions can trigger pullback towards 61.8% Fibonacci retracement.

Anil Panchal FXStreet

Not only its U-turn from 1.1285/87 horizontal-line but a dip beneath 61.8% Fibonacci retracement of May-June increase also portrays the EUR/USD pair’s latest downpour that presently prints 1.1208 during the early Asian session on Wednesday.

Considering oversold conditions of 14-bar relative strength index (RSI), an upward sloping trend-line since June 18, at 1.1197, can trigger the pair’s U-turn, if not then sellers can aim for late-June low surrounding 1.1180.

In a case where bears dominate past-1.1180, May month bottom around 1.1110 could become their favorite.

Alternatively, 61.8% Fibonacci retracement level of 1.1224 acts as an immediate upside barrier to watch during the pair’s recovery, a break of which can escalate the moves to 1.1240 and then towards 1.1285/87 horizontal-line.

It should also be noted that the quote’s run-up above 1.1287 enables it to question 1.1345 comprising 23.6% Fibonacci retracement.

EUR/USD 4-hour chart

Trend: Pullback expected

1. R3 1.1314
2. R2 1.129
3. R1 1.125
PP 1.1226
1. S1 1.1186
2. S2 1.1162
3. S3 1.1122

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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