Title: EUR/USD Price Analysis: Tests fresh two-decade low at 0.9540, more weakness ahead
September 28, 2022 02:13 AM ET
The EUR/USD pair is hovering around the critical support of 0.9540, which is a new two-decade low marked on Monday. In Asian trading, the value dropped significantly after trying to overcome the round hurdle of 0.9600. The major is auctioned at a tipping point, so an increase in volatility at the counter cannot be ruled out.
On an hourly basis, the bulls of the single currency will first test the level of 0.9540, and a subsequent selling pressure will send the pair in a negative direction. The downward trend line from Tuesday's high at 0.9671 will also be an important barrier.
The 20- and 50-period Exponential Moving Averages (EMAs) at 0.9583 and 0.9622, respectively, are downward sloping, adding to the downward filter.
In addition, the Relative Strength Index (RSI) (14) is oscillating in a bearish range of 20.00–40.00, suggesting further weakness.
If the level falls below Wednesday's low at 0.9542, the bulls will pull the level towards the June 2002 low at 0.9313, followed by the October 2001 high at 0.9241.
Investors could make a counter-bet if the value crosses Tuesday's high at around 0.9670, which will push the value towards Friday's high at 0.9852. A break of the latter would drive the price towards the round resistance at 0.9900.