• EUR/USD dropped from 1.1214 to 1.0177 becoming oversold

• Subsequent rebound reached 1.0535 where pair was overbought

• Following drop to 1.0125 became stretched resulting in reverse to 1.0443

• Lower highs for recoveries hint at further weakness

• Drop less stretched and fewer short euro after the rebound

• Parity (1.0027) is next target should downtrend be resumed

• High probability EUR/USD drops into a lower range

• Options cast any EUR/USD fall under parity in worrying light

• *


EURUSD


EURUSD

(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)