Euro’s break below 1.1196 (38.2% of 1.0517-1.1616) coupled with bearish daily RSI has opened doors for a drop to 1.1147 (daily 100-SMA).
However, caution needs to be observed as hourly RSI is back into oversold territory and that could trigger a technical correction to 1.1196.
If taken out, the spot could re-test hurdle at 1.1236, although such a move appears unlikely given the markets are positioning for Fed June rate hike after yesterday’s hawkish Fed minutes.