We have seen a sharp slide in EUR/USD in March since price broke into new lows on the year below 1.11. It is still falling, and has broken 1.10, tagging 1.05 this week before any consolidation. Let’s take a look at the charts to monitor the current near-term consolidation.
The technicals in the daily chart are overwhelmingly bearish. So even though the RSI is in oversold territory, it is not relevant, and there is more room to fall, while the RSI remains in the OS levels.
The 1H chart shows technical dominated by the bearish trend as well, but there was a consolidation during the 3/12 session. Note that price is still under the 50-hour SMA, and the RSI is still under 60, showing that the bearish bias and momentum is very much alive after this session-long consolidation.
A break below 1.0550 with the 1H RSI falling below 40 would be a sign that price is heading back down to 1.05, with risk of breaking lower. Many “experts” have the 1.00 (parity level) in sight. The pack mentality at this point is taking over, so whether you believe 1.0 is a fair price given the fundamentals, the EUR/USD will likely reach it.
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