The EUR/USD pair traded lower earlier this week and the pair has hit a new low this year near 1.085.
However, looking at the pair from a long-term perspective, we can see that the pair is currently in an important technical zone.
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On the monthly time frame chart, we can see that EUR/USD started this session with more bearish pressure, however, the buyers have managed to regain control of the price near the lower boundary of the structure which coincides with the uptrend line.
Although the pair has been trading lower during this session, we have been able to identify some buying force.
Monthly time frame. Source: xStation 5
Technical Analysis - 15 minutes time frame chart
Analyzing the pair over a shorter period of time on the 15-minute chart, we can see that the relative strength index (RSI) is giving several signs of oversold, so it could support the uptrend in the short term.
Furthermore, we can consider that there is a possibility that the price is about to form an inverted head and shoulders that would sustain a further recovery in the pair.
15 minutes time frame chart. Source: xStation 5
During this session, USD leads gains.
Source: currency-strength.com
Henrique Tomé, XTB Portugal
