EUR/USD: Another massive crash is likely

EUR/USD's 100-pip rise from the lows seems like another ‘dead cat bounce’ as volatility remains elevated. Friday's four-hour chart is pointing to a resumption of the downturn, in the opinion of Yohay Elam from FXStreet.

Key quotes

“EUR/USD is suffering from downside momentum on the four-hour chart and trades below the 50, 100, and 200 Simple Moving Averages – all bearish signs.” 

“Moreover, the recent bounce has pushed the Relative Strength Index above 30 – outside oversold conditions and allowing for more falls.”

“Some support awaits at 1.0720, a support line from 2017. The recent low of 1.0652 is the next level to watch.”

“Resistance awaits at 1.0855, a cap from February, and then by 1.0975, a swing high from earlier this week.”