Following a short-lasting recovery phase, EUR/USD came under renewed bearish pressure and started to decline toward the multi-year low it touched at 0.9952 in July.
The EUR/USD pair approaches it over a two-decade low set last July at 0.9951. Technical readings favor a continued decline as the pair is further below a now bearish 20 SMA, which develops well below the longer ones. Technical indicators, in the meantime, maintain their bearish slopes within negative levels without signs of downward exhaustion.
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In the near term, and according to the 4-hour chart, the risk is also skewed to the downside, although technical indicators stand in extreme oversold territory.
Nevertheless, the RSI indicator maintains its downward slope while the Momentum is stable, hinting at persistent selling interest. In the same time frame, the 20 SMA heads firmly south below the longer ones.
The pair is heading towards the aforementioned multi-year low and could even pierce it in the upcoming sessions. Bears will hold the grip as long as the pair remains below 1.0105.
Source- FxStreet
