- An upthrust formation at a crucial hurdle of 1.0050 has weakened the Eurozone bulls.
- The shared currency bulls could lose parity if sustains in the consolidation area.
- Failure in sustainability above 60.00 by the RSI (14) has pushed the asset back inside the woods.
The EUR/USD pair has sensed selling pressure after hitting an intraday high of 1.0050 in the Tokyo session. The asset has slipped sharply and is looking to extend losses as it is hovering around the immediate support of 1.0020. An occurrence of the same will deliver a vertical decline and the asset would lose the magical support of 1.0000.
Formation of an upthrust while attempting to break the tad longer consolidation has cleared that the downside bias is far from over. The upthrust formation signifies the availability of significant offers at a much-poked hurdle. The asset has slipped back into the consolidation range of 0.9956-1.0037 and will wait for a potential trigger to make a decisive move.
Asset prices are still higher than the 20-period Exponential Moving Average (EMA) at 1.0017 but don’t support a bullish bias now and will be demolished sooner.
Adding to that, the Relative Strength Index (RSI) (14) has failed to sustain in the bullish range of 60.00-80.00, which signals that the shared currency bulls are not bullish now.
Going forward, a drop below Friday’s low at 0.9945 will drag the asset towards a two-decade low at 0.9864, followed by the round-level support at 0.9800.
Alternatively, a break above Tuesday’s high at 1.0050 will send the asset towards September 6 high at 1.0113. A breach of the latter will drive the asset towards the previous week’s high at 1.0198.
EUR/USD hourly chart
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