EURUSD The 1W RSI hasn't been that low since 2015 !!

In fact the RSI on the weekly (1W) time-frame, which is now around 28.25, hasn't been that low since the April 06 2015 weekly candle. That alone shows just how oversold the EURUSD pair is at the moment, even on the long-term scale.

This doesn't mean that it is time for the dominant yearly trend to shift from bearish to bullish (has been bearish for the whole year) but such oversold levels should provide a technical relief rebound. In fact, since April 2015, every time the 1W RSI traded close to that level it jumped to at least a Fibonacci level higher.

Assuming the current structure replicates to a certain extent the Channel Down of 2018 - 2019, then we could see a rebound back towards 1.16000 which is where the Lower Highs trend-line is. If it marginally breaks it, as it did on September 24 2018, then it could reach as high as the 0.382 Fibonacci retracement level, which is at 1.17152. Keep in mind that the next Fibonacci level to the downside is very close, the 0.618 at 1.1938 and those Fibonacci trend-lines have been fairly accurate at forming Support and Resistance levels.



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