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EUR/USD has breached the ‘Macron Gap’ and that implies further falls for the pair, even if it suffers from oversold conditions as Wednesday’s four-hour chart is pointing, according to Yohay Elam from FXStreet.

Key quotes

“Euro/dollar is oversold according to the Relative Strength Index on the four-hour chart, which is just below 30 – implying a recovery. However, as recent days have shown, all upticks proved to be ‘dead-cat bounces’ – limited and short lived, followed by further falls.” 

“Momentum remains to the downside and the currency pair trades below the 50, 100, and 200 Simple Moving Averages.” 

“Support awaits at the new low of 1.0785 recorded on Tuesday, followed by 1.0770 and 1.0720 – levels seen in April 2017.”