EUR/USD continued to decline despite the rebound in the EU stock market and increase in risk appetite. Obviously, it is heavily affected by the recent decisions of both the ECB and the Fed, where the former still does not dare to raise rates amid sky-high inflation, while the latter, announced a more aggressive rate hike.
Technical picture:
The quote is below the middle line of the Bollinger indicator, below SMA 5 and SMA 14 The relative strength index (RSI) is below 50% and is moving towards the oversold zone, while the stochastic indicator is already leaving that area.
Possible dynamics:
A consolidation below 1.0700 will most likely lead to a further dip to 1.0610.