EUR/USD is accelerating its decline below 1.0300, hitting the lowest level since November 2002. Mounting recession fears dent risk appetite and boost the US dollar’s safe-haven appeal.
The Relative Strength Index (RSI) indicator on the four-hour chart dropped below 30. This suggested that the pair has turned technically oversold. The last time the RSI fell below 30 on June 30, the pair staged an 80-pip rebound before continuing its downtrend.
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In case the pair makes a technical correction, 1.0350 (previous support) aligns as the first hurdle ahead of 1.0380 (static level) and 1.0400 (psychological level).
If 1.0350 is confirmed as resistance, 1.0300 (psychological level) forms initial support before 1.0260 (static level from December 2002) and 1.0200 (psychological level).
It was reported that the EUR/USD pair lost its traction and declined toward 1.0400 in the American session. This was after having climbed above 1.0460 earlier in the day when the market was closed for the US independence day celebration.
