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.

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.