Title: EURUSD Price remains depressed below 1.0150 amid damp mood
Jul 19, 2022 03:29AM ET
EURUSD is trading pressured as the US dollar looks to extend its recovery.
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EURUSD price is off the lows but remains in the hands of sellers below 1.0150, as we progress towards early European trading. The upside correction in the main currency pair lost traction at 1.0200 the figure, as the market optimism seems to have vapored on resurfacing concerns over global growth.
The latest leg down in the major has reversed half the previous recovery rally, as EUR bears snapped the three-day upswing from almost twenty-year lows of 0.9952 reached last Thursday. The shared currency breached the critical parity level against the US dollar, marking a historic momentum after two decades.
EURUSD Price has carved out a bear flag formation on the daily sticks, in the wake of the ongoing consolidative mode that followed the downtrend. The rising trend line resistance at 1.0224 is the line in the sand for EUR sellers. But first, the bulls will need to find acceptance above 1.0200.
On the downside, the rising trend line support at 1.0050 could limit any fresh declines, below which the parity will get challenged once again.
The 14-day Relative Strength Index (RSI) is turning south again while within the bearish territory, suggesting that a fresh downswing could be in the offing. A breach of the abovementioned 1.0050 supports on a daily closing basis will confirm a bear flag, reopening doors for a new twenty-year low below 0.9952.