EUR/USD: Oversold conditions implying a bounce

EUR/USD has hit new 2020 lows. As analyst at FXStreet Yohay Elam notes, the pair is oversold and a bounce is on the cards.

Key quotes

“The world's most popular currency pair is nearing 1.0960, the lowest since mid-October. America's economic might now comes to the test.”

“The Relative Strength Index on the four-hour chart has dipped below 30 – entering oversold conditions and implying a bounce. However, euro/dollar suffers from downside momentum and trades below the 50, 100, and 200 Simple Moving Averages.” 

“The fresh low of 1.0960 provides weak support and it is followed by 1.0940 and 1.0925.”

“Some resistance awaits at the daily high of 1.0985, closely followed by 1.0990