EUR/USD has been paring back its gains amid coronavirus fears. Monday’s four-hour chart is pointing to further falls, as FXStreet’s analyst Yohay Elam notes.
“While momentum on the four-hour chart turned positive, euro/dollar has failed to recapture the 50 Simple Moving Average. It trades below the 100 and 200 ones.”
“More importantly, the Relative Strength Index is back above 50 – outside oversold conditions and allowing for more falls.”
“Support awaits at 1.0820. The 2020 low of 1.0777 – also the lower bound of that 34-month old gap – is the next level to watch.”