EUR/USD Price Analysis: Renews two-year low at 1.0630, sees more downside ahead

• A sheer downside move is advocating more weakness in the asset.
• The 10- and 20-period EMAs are scaling lower, which adds to the downside filters.
• Momentum oscillator RSI (14) has shifted into a bearish range of 20.00-40.00

The EUR/USD pair is drifting lower firmly from the last four trading sessions after failing to sustain above the psychological resistance of 1.0900. The downside momentum has pushed the asset below 1.0700 and has registered a fresh two-year low at 1.0633 in the Asian session.

On the weekly scale, EUR/USD is oscillating around March 2020 low at 1.0636 after a sheer downside momentum from May 2021. The asset is at make or breaks level and is going to display wide ticks going forward. The downward trendline placed from March 2021 high at 1.2266 will continue to act as major resistance for the counter.

The 10- and 20-period Exponential Moving Averages (EMAs) at 1.0937 and 1.1092 respectively are trending downside, which signals that a bearish trend is still intact.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00 range, which adds to the downside filters. The momentum oscillators RSI (14) is not showing any sign of divergence and an oversold situation.

A firmer drop below Wednesday’s low at 1.0633 will drag the asset towards April 2017 low at 1.0570, followed by December 2015 low at 1.0524.

On the contrary, euro bulls could witness a pullback, which will turn into a bullish reversal after overstepping the round level resistance of 1.0700. This will send the asset towards Monday’s average traded price at 1.0754. A breach of Monday’s average traded price will drive the asset to near Friday’s high at 1.0851.

EUR/USD weekly chart