EUR/USD Unwinding From Oversold Conditions
EUR/USD is continuing to unwind from oversold conditions, following the worst-than expected US non-farm payrolls, which triggered economic recovery concerns last week.
Near-term resistance is likely to cap at 1.2590, then 1.2650 and 1.2824 (22nd May). Only a sustained move at these levels would neutralize the extreme market condition.
In terms of the big picture, key structural support remains at 1.2125/30, which would equate to EUR/USD losing half of its gains from the bull market taken from the year 2000.
Inversely, the USD Index still unwinding from overbought conditions, after already gaining over 5% in just 3 weeks. Key support can be found at 81.78 (13th Jan peak).