Yohay Elam, an analyst at FXStreet, warns that Thursday’s 4-hour chart is showing critical support at 1.1750 is in danger as the EUR/USD pair trades around 1.1770, down -0.40% on the day.
“Euro/dollar is suffering from downside momentum on the 4-hour chart and has dropped below the 50, 100, and 200 Simple Moving Averages. The Relative Strength Index is nearing 30 – thus about to enter oversold conditions implying a bounce.”
“The critical battle line is 1.1750, which provided support twice in recent weeks. EUR/USD breached that level and hit 1.1737, yet the breakout is yet to be confirmed. Further down, 1.17 is another double-bottom to watch, and it is followed by 1.1625.”
“Some resistance is at 1.1785, a support line from this week and also from earlier in September. It is followed by 1.1830, which provided before the recent fall. Further above, 1.1875 and 1.1920 await the pair.”