EUR/USD: Bullish corrective movement

The EUR/USD pair has hovered around 1.0800 for the last three trading days, although weak US PMI have helped it trim weekly losses, now trading at around 1.0840. EUR/USD extreme oversold conditions point to a bullish corrective advance, according to Valeria Bednarik from FXStreet.

Key quotes

“The weekly chart shows that the pair remains far below all of its moving averages, while technical indicators lost strength downward, but remain well into negative territory, suggesting that in the long-term, the risk remains skewed to the downside.”

“In the daily chart, the pair is barely correcting extreme oversold conditions, as it’s trading roughly 60 pips above its 2020 low after losing 320 pips pretty much straight.” 

“Technical indicators have moved out extreme oversold territory for the first time in over a week, but remain well below their midlines. The 20 DMA maintains its bearish slope at around 1.0940 while holding below the larger ones.”

“For the upcoming days, 1.0900 is the immediate resistance ahead of the mentioned 20 DMA. 1.0770 is immediate support.”