EUR/USD Renewed Setbacks Trigger Fresh 2012 Lows
EUR/USD’s renewed setbacks are continuing to trigger fresh 2012 lows. However, price conditions remain very oversold and unsustainable, with both extreme momentum and net short positions.
There is still growing probability for a temporary relief bounce over the coming sessions into 1.2910/12 and potentially 1.3000 (psychological level). Only a sustained move around these levels would help neutralize the extreme market condition.
In terms of the big picture, key structural support remains at 1.2125/30, which would equate to EUR/USD losing half of its gains from the bull market taken from the year 2000.
Inversely, the USD Index recovery has rocketed much higher above the previous 2012 peak at 81.78. The move is overbought and is showing signs of price exhaustion after exhibiting a doji candlestick pattern.