FX.co ★ EUR/USD

EURUSD For EURUSD, for now I still consider continuation of the decline as the primary scenario. The pair is confidently trading below the moving averages, MACD remains in negative territory, so sellers still hold the advantage. But ahead there is fairly strong support at 1.13529-1.13241 — these are the lows of the summer months — and the price could well stop here and give a decent retracement upward. Besides, RSI already shows oversold conditions, so I would be cautious about selling right into this zone. One RSI is not enough for a reversal up — I want to see a proper reversal pattern — and the euro could be helped by a weakening dollar, for example if US data turns out weaker than expected and the market slightly reduces expectations of further rate hikes. If buyers fail to hold 1.13529-1.13241 and the price settles below, then the decline could continue to 1.12690. For now I’m leaning more toward sells, but near this zone I will wait for the price reaction, because a correction upward could quite possibly start from here.