EUR/USD consolidation expected below 1.0900 – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes that with EUR/USD bouncing off its lows, some consolidation below 1.0900 might be seen in the pair, and expects any further recovery to meet selling interest at 1.0950 levels.

Key Quotes

“The Asian session has sent the EUR/USD to a fresh multi-year low of 1.0823, bouncing with the European opening. Nevertheless, the movement stalled right below the 1.0900 level, from where the pair is now retracing.”

“From a technical point of view, the 4 hours chart shows that the latest price recovery was barely enough to help indicators move away from extreme oversold levels, albeit the RSI remains below 30 and the Momentum indicator is far from overcoming 100.”

“Some consolidation could be expected below the 1.0900 level, with a break below 1.0860 probably signaling a retest of the mentioned daily low around 1.0820. A beak below this last should see a downward acceleration towards the 1.0790 price zone in the short term.”

“A recovery above 1.0900 on the other hand, may lead to a rally up to 1.0950, where selling interest is expected to resume.”

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