EURUSD has been in a downtrend for the past two months. But now a correction seems to be unfolding.
EURUSD has reached the strong support area around 1.0515-1.0480. RSI closed yesterday below 25 i.e., in oversold territory.
If RSI is closing above its upper falling trend there is great likelihood of a EURUSD correction to test the upper falling trendline and the 0.3825 retracement at 1.0663.
However, if EURUSD is closing above the upper falling trend line a correction could continue all the way up to the 0.618 retracement at around 1.0775
If EURUSD is closing this Friday above 1.0635 it has closed the week, the month and the quarter above a key resistance level. That could lead to the weekly RSI closing back above 40 meaning it would still be in positive sentiment.
If EURUSD is failing to close above 1.0635 today – the end of the week and month - the downtrend is still in play on all time periods.
If EURUSD closes below 1.0480 there is no real strong support until around 1.0240. Minor support at around 1.0438