Technical Analysis: EURUSD set to drop further towards 1.1500
Having offered a clear break of the late 2020 supports, now resistances around 1.1600, EURUSD is all in for further weakness. The current consolidation during early Friday could be linked to oversold RSI conditions. However, the bears keep the fort, targeting March 2020 tops surrounding 1.1500. In a case where the quote refrains from bouncing off 1.1500, June 2020 peak close to 1.1420 should return to the chart. It’s worth noting that the pair’s extended fall should be slower and hence sellers should be cautious and patient as well.
During the quote’s corrective pullback, the 1.1600 mark serves as the key level, a break of which should trigger short-term buying on the way to the previous descending support line from March 2021, near 1.1645-50. In a case where the EURUSD prices remain firm past 1.1650, late September swing high near 1.1755 will be on the buyer’s target. Overall, the quote remains bearish but sellers seem to be tired after a long run.