Although positively aligned, the 50- and the 200-period SMAs see the EUR/USD quoting between both averages on 4H charts.
The shift from a steady rally to the unfolding of a corrective pattern has brought RSI below its 35% level, considered oversold territory in an otherwise bullish context.
While still above its 200 SMA, buyers may try to keep the upward trajectory in place. If taken out, a slide below the 200 moving average would suggest an increased risk that the corrective process has developed into a new downward trend. A close back above the 50 SMA would delay the current stumbling and spur ideas that another wave of demand is likely.
Has the correction in EUR/USD run its course?
(Market News Provided by FXstreet)