Earlier this evening in a note to clients, we noted that with the dollar (DXC) strength, we would likely see a re-test of the 1.3411/1.3392 level.
The chart below notes how on previous occassions when the RSI reached a reading of less than 16, it often resulted in a reversal of price. This is the case currently and we also have a solid support level(s). It boils down to which chart pattern you feel is more likely to play out, the rebound in EUR/USD or the continued rebound in the dollar. Only one can be correct.
EUR/USD
Dave
The chart below notes how on previous occassions when the RSI reached a reading of less than 16, it often resulted in a reversal of price. This is the case currently and we also have a solid support level(s). It boils down to which chart pattern you feel is more likely to play out, the rebound in EUR/USD or the continued rebound in the dollar. Only one can be correct.
EUR/USD
Dave