EURUSD is about to break below parity. 1.00. It has been in the cards for quite some time but what is next. I wrote about it in May https://www.home.saxo/content/articles/forex/taeurusd-05072022 but time to refresh.
We must look back several decades to find support levels. 0.96 is next support but EURUSD dropping into the Consolidation area from 2000-2002 between 0.96 and 0.82 is not unlikely.
0.90 is a key level. Back in May 2002 that was the breakout level where EURUSD broke bullish out of its Symmetrical triangle pattern reversing the long down trend going back to the early 1990’s.
RSI still has a bit of way to drop before it reaches same value as in 2015 and 2000 where market turned around. However, just because RSI will hit historic low values around 20 it is not a guarantee of a market bottom. As we saw back in 2015 when RSI hit 20 it was not the market bottom. It was in 2016 in other words a rebound is probable but it is quite likely it will not be the bottom in EURUSD.
Source: Saxo Group