EUR/USD: Odds in favor of more falls
Yohay Elam from FXStreet sees the world's most popular currency pair breaking the double-bottom of 1.0940.
“The dollar is on a roll once again. EUR/USD is hovering around the double-bottom of 1.0940 – a price reached on Friday and in early October.”
“On Monday, returns on the benchmark 10-year treasuries are marginally lower – insufficient to help EUR/USD get off the ground. The currency pair may resume its falls once yields flip higher again.”
“The Relative Strength Index is just below 30 – indicating oversold conditions and implying a potential bounce. Momentum remains to the downside, and EUR/USD is trading below the 50, 100, and 200 Simple Moving Averages.”
“Critical support awaits at the 1.0940 double-bottom. It is followed by 1.0925 and 1.0905.”