After registering the largest daily losses in a month, the EUR/USD remains depressed.
The bears are being challenged by an oversold RSI near the crucial support line from November.
The immediate upside is guarded by a 13-day-old falling trend line, and sellers can rapidly refresh the yearly bottom if the support line is broken.
During the first Asian session on Wednesday, the EUR/USD is trading near the early April lows of 1.1780. After high US CPI boosted bears, the currency-major pair plummeted the most since mid-June.
Around 1.1760, however, the bears will be challenged by oversold RSI circumstances and a rising support line from November. The new spike in Momentum also adds to the hopes of a corrective bounce.
While the latest rally has its sights set on the 1.1800 level, any additional gains will be checked by a short-term resistance line at 1.1865.
The late June top of 1.1965 and the 200-DMA level near 1.2010 will be the key to follow if EUR/USD bulls manage to break the abovementioned trend line hurdle.
A negative breach of 1.1760, on the other hand, will not hesitate to retest the yearly low of 1.1704 and attack the 1.1700 round figure in order to target the 2020 bottom near 1.1600.
Expect a reversal in the trend./n
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