EUR/USD: While our overall bias remains extremely bearish on the pair over the medium-term, daily and weekly studies are looking very oversold and it is becoming increasingly difficult to justify selling at current levels. Next critical support doesn’t come in until the 2008 lows by 1.2330, but we would expect to see a corrective bounce from where a lower top is sought out ahead of an eventual bearish resumption. A break back above 1.3000 will now be required to relieve downside pressures.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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