September 20, 2022 01:14 AM ET
By: AnalysisWatch
The EUR/USD pair felt selling pressure after hitting an intraday high of 1.0050 in the Tokyo session. The asset has dropped precipitously and is struggling to extend losses as it hovers near the immediate support level of 1.0020. Its occurrence will bring a vertical decline and the asset will lose the magic support of 1.0000.
The formation of an uptrend while trying to break the tad longer consolidation showed that the downtrend is far from over. The upthrust formation marks the availability of a significant bid at a much-pierced hurdle. The asset has slipped back into the 0.9956-1.0037 consolidation zone and will await a potential trigger for a decisive move.
The Relative Strength Index (RSI) (14) has failed to hold in the bullish 60.00–80.00 range, signaling that bulls do not favor the shared currency at this time.
Going forward, a drop below Friday's low at 0.9945 will drag the asset towards the 20-year low at 0.9864, followed by support at the round 0.9800 level.
Alternatively, a break above Tuesday's high at 1.0050 will send the asset towards the September 6 high at 1.0113. A break above it will push the asset towards last week's high at 1.0198.
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