- EUR/USD picks up bids to refresh intraday high but stays near the lowest levels since December 2002.
- Oversold RSI hints at short-term rebound but weekly resistance line, 21-DMA guard recovery.
- Key FE levels, multi-day-old support line challenge bears below 0.9850.
EUR/USD renews intraday high near 0.9950 as it consolidates recent losses at the lowest levels in nearly 20 years during Tuesday’s Asian session. In doing so, the major currency pair justifies oversold RSI (14) as the bulls retreat.
It’s worth noting, however, that the weekly resistance line and the 21-DMA, respectively near 1.0100 and 1.0170, could challenge the EUR/USD buyers.
Even if the EUR/USD price manages to rise past 1.0170, the monthly high of 1.0370 will be crucial to watch for the pair buyers.
Alternatively, a daily closing beneath the yearly low surrounding 0.9950 becomes necessary for the EUR/USD bears to keep reins.
Following that, a southward trajectory towards the 61.8% Fibonacci Expansion (FE) of May-August moves, near 0.9850, could entertain sellers.
If at all the EUR/USD remains bearish past 0.9850, a convergence of the downward sloping support line from May 13 and the 78.6% FE, around the 0.99700 threshold, appears a tough nut to crack for the pair sellers.
EUR/USD: Daily chart
Trend: Further weakness expected