EUR/USD has declined by 1% so far this week and looks set to extend losses as the technical picture is bearish despite the fact that the pair is entering oversold conditions according to Friday's 4-hour chart, Yohay Elam, an Analyst at FXStreet, reports. At press time, the EUR/USD pair is trading largely unchanged on the day around 1.17.
“The Relative Strength Index on the 4-hour chart is flirting with the 30 level – nearing oversold conditions. That implies a potential bounce – yet it may only be limited. Momentum remains to the downside and EUR/USD is trading below the 50, 100, and 200 Simple Moving Averages.”
“Critical support awaits at 1.1685, which provided support on Thursday and also in late September. Further down, last month's lows of 1.1625 and 1.1610 await the currency pair.”
“Some resistance is at 1.1720, which separated ranges earlier this week, followed by 1.1770, a swing high, and 1.1810.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.