The EUR/USD pair remained on the defensive through the Asian session and was last seen trading around the 1.1270-65 region, just a few pips above a 16-month low touched on Friday. That said, RSI (14) has already fallen below the 30 mark and point to extremely overstretched conditions on the daily chart. This, in turn, was seen as the only factor that helped limit any further losses, at least for now. In the absence of any major market-moving economic releases on Monday, the EUR/USD pair remains at the mercy of the USD price dynamics.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Looking at the 4-hours chart, the pair even settled below the 1.1350 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The pair even traded below the 1.1320 support zone. A low is formed near 1.1249 and the pair is now consolidating losses. On the upside, the pair is facing resistance near 1.1315. It is near the 50% Fib retracement level of the recent decline from the 1.1374 swing high to 1.1249 low. There is also a connecting bearish trend line forming with resistance near 1.1320 on the same chart.

A clear break above the 1.1315 and 1.1320 resistance levels could open the doors for more gains. The next key resistance could be 1.1400.

On the downside, an initial support is near the 1.1250 level. A downside break below 1.1250 may perhaps open the doors for a move towards 1.1220. The next major support sits at 1.1200, below which the pair could dive to 1.1150.

EURUSD at Further Downside Risk

Nov 22 2021