EUR/USD Price Analysis: Reclaim of 1.0000 looks imminent
- The greenback bulls are aiming to re-test the 19-year low at 0.9952.
- The 10-and-20-EMAs are scaling lower, which adds to the downside filters.
- A (20.00-40.00) bearish range shift by the RSI (14) signals more downside ahead.
The EUR/USD pair has given a downside break of the consolidation formed in a narrow range of 1.0030-1.0046 in the Tokyo session. The asset is declining sharply towards parity on volatility expansion as a downside break of the consolidation has set a stage for a downside move with volumes and wider ticks. The major as continued its two-day losing streak after violating Friday’s low of 1.0032.
On the daily scale, the asset is declining firmly towards the horizontal support, which is placed from July 14 low at 0.9952. It would be worth observing the re-test of the 19-year low as the downside momentum will provide cues for further direction.
Declining 10-and 20-period Exponential Moving Averages (EMAs) at 1.0136 and 1.0175 respectively are indicating more downside ahead.
Also, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals that the greenback bulls are on an adrenaline rush and more downside looks favored.
A downside break of Monday’s low at 1.0023 will drag the asset towards July 14 low at 0.9952, followed by the round-level support at 0.9900.
On the flip side, a meaningful move above the August 17 low at 1.0150 will send the asset towards Aug 17 high at 1.0203. A breach of the latter will drive the asset towards the August 5 high at 1.0254.
EUR/USD daily chart
-637967290673502986.png)
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
