EUR/USD is showing a local downward reversal on the wave of new sell-offs in the stock markets, galloping inflation in the Euro area and the unclear position of the ECB regarding interest rates.
Technical picture:
The quote is under the Bollinger indicator, below the SMA 5 and SMA 14. The relative strength index (RSI) is below 50% and is declining, while the stochastic indicator is above 50% but is moving down.
Possible dynamics:
A decline and consolidation below 1.0705 is likely to lead to a fall to 1.0650.
