EUR/USD to fall to its weakest level since July 2020 if 1.1200 support fails

EUR/USD has extended its bearish trend following Fed's policy announcements. As FXStreet’s Eren Sengezer notes, sellers eye fresh 18-month lows below 1.1190.

Euro/dollar is extremely oversold in the short-term

“In case the 1.1200 support turns into resistance, the pair could face additional bearish pressure and touch its weakest level in 18 months near 1.1180. Below that level, 1.1170 (static support from Jul. 2020) aligns as the next support before sellers can target 1.1100 (psychological level).”

“1.1250 (static level, former support) now acts as the first technical resistance ahead of 1.1270 (static level, former support) and 1.1300 (psychological level).”

“With the Relative Strength Index (RSI) indicator on the four-hour chart showing extremely oversold conditions below 30, a technical correction could be witnessed in the short term but the bearish bias should stay intact unless the pair reclaims 1.1300.”