EUR/USD: Pair’s Downtrend Could Continue
2022.04.26 14:35
After consolidation below the support level of 1.0800, the downtrend on EUR/USD continued at a faster pace. Eventually, the euro plunged by 110 pips, signaling the extension of the mid-term bear trend.
The RSI indicator moves down in the range between 30 and 50 in the 4-hour and daily time frames, indicating increased bearish bias.
The moving averages of the Alligator indicator are heading down in the 4-hour and daily time frames, confirming bearish bias and signaling to sell the euro.
The daily chart reflects a gradual weakening of the euro since June 2021. The pair has declined by 1,500 pips, which is about 12.3%.
Outlook
On its way down, the euro became oversold in the short term, and the bear trend slowed around the 1.700 mark. Under the current circumstances or in the case of a pullback, the movement will continue. Sellers may well push the quote to the swing low of 1.0636, recorded on Mar. 23, 2020.
In terms of complex indicator analysis, there is a signal to buy the pair in the short term due to a pullback. Technical indicators also signal to sell the instrument intraday and in the medium term due to the general trend.
EUR/USD 4-hour chart.
