EUR/USD technical analysis: Oversold RSI signals pullback from 5-month-old support-line

EUR/USD sellers dominate around the fresh yearly low.
Oversold RSI, near-term falling trend-line could question bears.

Anil Panchal FXStreet

While sustained trading below three-week-old support (now resistance) portrays the EUR/USD pair’s weakness, nearness to key support-line, amid oversold RSI, keeps buyers hopeful while the quote seesaws near 1.0915 during early Friday.

As a result, counter-trend traders will look for a bounce from a falling trend-line since late-April, at 1.0890, in order to challenge immediate resistance-line, at 1.0925/27, a break of which could escalate the recovery to 1.0960/65 and 10-day simple moving average (SMA) near 1.1000 mark.

It should, however, be noted that pair’s sustained run-up beyond 1.1000 enable bulls to aim for monthly top close to 1.1110.

In a case when bears refrain from respecting the oversold condition of 14-day relative strength index (RSI), May 2017 low near 1.0840 and April 2017 gap of 1.0740 will flash on sellers’ radar.

EUR/USD daily chart

Trend: pullback expected

additional important levels

Overview
Today last price	1.0913
Today Daily Change	-9 pips
Today Daily Change %	-0.08%
Today daily open	1.0922

Trends
Daily SMA20	1.1016
Daily SMA50	1.1088
Daily SMA100	1.1167
Daily SMA200	1.1245

Levels
Previous Daily High	1.0967
Previous Daily Low	1.0909
Previous Weekly High	1.1084
Previous Weekly Low	1.099
Previous Monthly High	1.1251
Previous Monthly Low	1.0962
Daily Fibonacci 38.2%	1.0931
Daily Fibonacci 61.8%	1.0945
Daily Pivot Point S1	1.0898
Daily Pivot Point S2	1.0874
Daily Pivot Point S3	1.0839
Daily Pivot Point R1	1.0957
Daily Pivot Point R2	1.0992
Daily Pivot Point R3	1.1016

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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