- EUR / USD quickly rebounds from 16-month lows and struggles around 1.1300.
- Oversold conditions on the RSI could offer a temporary reprieve to EUR bulls.
- The focus is on eurozone inflation for the next big move in the pair.
The EUR / USD pair is struggling to extend the recovery from a fresh 16-month low of 1.1264 touched during the Asian session on Wednesday, currently struggling against 1.1300 as the US dollar clings to its recent strength.
However, a pullback in US Treasury yields offers some relief to the EUR bulls, while oversold conditions on the daily chart also come to the rescue of the bulls.
The currency pair extended its losing streak for the sixth consecutive session on Wednesday, having witnessed a strong 40-pip selloff following a breakout of the 1.1300 psychological level.
The 14-day RSI is pointing lower while inside oversold territory, justifying the rapid rally in the EUR / USD in the last few hours.
However, if the bears challenge the oversold conditions, then the daily low could be tested once more, below which the 1.1250 barrier will be on the sellers’ radar.
EUR / USD daily chart
On the other hand, any rally will need acceptance above the daily highs of 1.1327.
Higher up, the psychological barrier of 1.1350 will challenge the bulls’ commitment.
EUR / USD additional levels
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