EUR/USD to face critical support at 1.1685

EUR/USD has declined by 1% so far this week and looks set to extend losses as the technical picture is bearish despite the fact that the pair is entering oversold conditions according to Friday's 4-hour chart, Yohay Elam, an Analyst at FXStreet, reports. At press time, the EUR/USD pair is trading largely unchanged on the day around 1.17.    

Key quotes

“The Relative Strength Index on the 4-hour chart is flirting with the 30 level – nearing oversold conditions. That implies a potential bounce – yet it may only be limited. Momentum remains to the downside and EUR/USD is trading below the 50, 100, and 200 Simple Moving Averages.”

“Critical support awaits at 1.1685, which provided support on Thursday and also in late September. Further down, last month's lows of 1.1625 and 1.1610 await the currency pair.”

“Some resistance is at 1.1720, which separated ranges earlier this week, followed by 1.1770, a swing high, and 1.1810.”