The tumble in EUR/USD that has taken it from a high of 1.2266 on May 25 to only just above 1.13 now shows no sign of ending anytime soon. Indeed, the price has now broken below the support line connecting the lower lows of a downward-sloping channel in place since that May date and this means it could drop much further, perhaps to the lows around 1.1170 reached in June last year.
As always, a near-term bounce cannot be ruled out but a sustained rally looks very unlikely even though the 14-day relative strength index, or RSI, that can seen at the bottom of the chart below is now under the 30 level that suggests the pair has been oversold.
