EUR/USD hits fresh 2016 lows after another short-lived recovery

The retreat of the EUR/USD pair from the highs accelerated during  the American session. The pair broke below 1.0580 and fell to 1.0568, the lowest since December 2015. 

Currently, the pair trades at 1.0583/88. It moved off daily lows but still holds a strong bearish tone and is down 0.35% for the day. The euro is headed toward the tenth daily decline in a row. 

The US dollar continues to benefit in the market amid expectation of a rate hike from the Federal Reserve and from rising US bond yields. 

Technical outlook

From a technical perspective, Valeria Bednarik, Chief Analyst at FXStreet notes that there are not signs of a bottom yet, despite the fact that the decline is way overstretched in the daily chart. “The daily chart shows that the RSI indicator is currently at 19, while the Momentum is also in extreme oversold territory, but both maintain their sharp bearish slopes.”

According to her, the bearish immediate bearish target is in the 1.0505/20 region while to the upside, she places the first relevant resistance for the upcoming days, in 1.0650, “from where the upward corrective move can extend up to the 1.0800 region.”

To learn more about this topic, check our video analysis.

EURUSD from Tip TV Productions on Vimeo.