EUR/USD Price Analysis: Bear flag breakdown on D1
- EUR/USD's bear flag breakdown has exposed September lows.
- The daily chart RSI also favors deeper losses.
The path of least resistance for EUR/USD is to the downside.
The pair fell by over 0.6% on Wednesday, confirming a bear flag breakdown on the daily chart. The breakdown indicates the sell-off from the Sept. 1 high of 1.2011 has resumed. As such, a re-test of the Sept. 25 low of 1.612 looks likely.
Supporting the case for a deeper drop is the below-50 or bearish reading on the 14-day relative strength index. Also, the daily chart MACD histogram is printing deeper bars below the zero line. That's a sign of the strengthening of bearish momentum.
The bearish outlook would be invalidated if the pair finds acceptance above Thursday's high of 1.1758. At press time, the pair is trading largely unchanged on the day near 1.1673.