EUR/USD Price Analysis: Drops toward 1.1000 amid overbought RSI
- EUR/USD prods three-day winning streak while retreating from one-week-old horizontal hurdle.
- Overbought RSI (14) line adds strength to the pullback moves targeting fortnight-long support zone.
- 200-HMA acts as an additional downside filter within short-term ascending triangle.
EUR/USD is on the cusp of printing the first intraday loss in four as it takes offers to reverse intraday gains around a one-week high, falling to 1.1050 amid early Tuesday morning in Europe. In doing so, the Euro pair takes a U-turn from a short-term key horizontal resistance amid the overbought RSI (14) line.
With this, the EUR/USD sellers are well set to test a two-week-old horizontal support zone of around 1.1000.
However, the 200-Hour Moving Average (HMA) and an upward-sloping trend line from April 10, forming part of a bearish triangle formation, respectively near 1.0985 and 1.0960, can challenge the EUR/USD bears afterward.
In a case where the Euro pair drops below 1.0960, the odds of witnessing a south run towards the 61.8% Fibonacci retracement level of April 10-14 upside, near 1.0930, can act as the last defense of the EUR/USD buyers.
On the contrary, a sustained break of the stated triangle’s top line, close to 1.1070, will defy the bearish chart pattern and can prod the latest multi-month high of around 1.1075.
Though, the EUR/USD pair’s successful trading beyond 1.1075 won’t hesitate to challenge the late March 2022 high surrounding 1.1185.
Overall, EUR/USD pair is likely to decline in the short term but the bullish trend remains intact unless the quote stays beyond 1.0930.
EUR/USD: Hourly chart
Trend: Further downside expected