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EURUSD inches closer to 1.1160-40 support area

Short
FX:EURUSD   Euro / U.S. Dollar
A clear downside break of June 2020 swing high and 61.8% Fibonacci retracement (Fibo.) of March 2020 to January 2021 upside keeps EURUSD bears hopeful to visit a 20-pip horizontal region comprising March 2020 peak and June 2020 trough. However, oversold RSI conditions may challenge the pair bears afterward, if not then the 78.6% Fibo. level of 1.1000 should be on the cards. Additionally, extended weakness past 1.1000 will aim for a 1.0780-60 multiple support zone before challenging the previous yearly low of 1.0635.

Meanwhile, the corrective pullback may initially aim for a 61.8% Fibonacci retracement level of 1.1300 prior to challenging the June 2020 high near 1.1420. It should be noted, however, that the bearish trend is less likely to be reversed until the EURUSD prices remain below October’s bottom surrounding 1.1525. Overall, the currency major remains vulnerable to further weakness but intermediate bounces can’t be ruled out.