EUR/USD: Recovery to be capped at 1.0800

EUR/USD on Thursday slipped below a 2-1/2-year-old descending trend-line support and thus, remains vulnerable to slide further in the opinion of FXStreet’s analyst Haresh Menghani.

Key quotes

“A bullish divergence of the daily RSI warrants some caution before placing any aggressive bearish bets. Hence, it will be prudent to wait for some follow-through recovery.”

“A sustained strength beyond the 1.0800 mark might trigger a fresh bout of a short-covering move and lift the pair further towards the 1.0880 supply zone with some intermediate resistance near the 1.0835 level.”

“The 1.0700-1.0690 region now seems to protect the immediate downside and is followed by multi-year lows support near mid-1.0600s.”