EURUSD refreshes 16-month low on the road to 1.1150

Alike other major currencies, the broad US dollar strength could be well witnessed on the EURUSD chart that prints the lowest level since July 2020. In doing so, the quote slips below the 61.8% Fibonacci retracement of March 2020 to January 2021 upside, around 1.1300, which in turn joins the bearish MACD signals to keep sellers hopeful. However, oversold RSI conditions hint at a pullback and hence the pair’s further downside hinges on a daily closing below 1.1300. Following that, a horizontal area comprising highs marked during late March and lows of late June, around 1.1150, will be the key to watch.

Alternatively, the EURUSD pair’s corrective pullback may aim for June 2020 peak near 1.1420 but any further upside will be challenged by March 2020 peak and 50% Fibonacci retracement level around 1.1500. Even if the pair provides a daily closing past 1.1500, multiple hurdles around the 1.1600 threshold will play their roles to challenge the buyers. To sum up, EURUSD bears are in control but RSI conditions signal a bounce before further declines.