EUR/USD Price Analysis: Immediate rectangle, oversold RSI test bears around mid-1.0200s
- EUR/USD remains pressured around the lowest levels since late 2002.
- Oversold RSI, rectangle formation limit the pair’s immediate moves.
- 20-HMA guards immediate rebound, previous support, 100-HMA challenge intraday bulls.
EUR/USD bears take a breather around almost 20 years even if traders flirt with the 1.0250 heading into Wednesday’s European session. It’s worth noting that the quote slumped the most since March 2020 the previous day after breaking a two-week-old support line.
That said, the major currency pair stays inside an immediate rectangle formation between 1.0275 and 1.0230.
The oversold RSI (14) and the market’s anxiety ahead of today’s Federal Open Market Committee (FOMC) Minutes and the US ISM Services PMI for June, expected 54.5 versus 55.9 prior, also restrict immediate EUR/USD moves.
Hence, a corrective pullback is on the cards even if the 20-HMA level surrounding 1.0265 restricts the pair’s nearby upside.
It’s worth noting that the EUR/USD run-up beyond 1.0275, comprising the stated rectangle’s resistance line, needs validation from the previous support line from June 22 and the 100-HMA, respectively near 1.0330 and 1.0400.
Meanwhile, a downside break of the 1.0230 could aim for the July 2002 high near 1.0200.
Following that the 1.0100 level might act as an intermediate halt during the slump targeting the 1.0000 psychological magnet.
EUR/USD: Hourly chart
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Trend: Limited downside expected
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.
