FX.co ★ EUR/USD analysis for August 23, 2023 - First downside objective has been reached, potential for the further drop

Technical analysis:

EUR/USD has been trading downside as I expected and the price has reached first downside objective at 1.0847 and there still potential for the further drop.

Due to the breakout of the rising channel and strong downside momentum, I see potential for the further drop towards lower reference.

Downside objective is set at the price of 1.0778

Stochastic oscillator is showing oversold condition with no sign for the reversal.

Key resistance is set at the price of 1.0930