EURUSD is tilted to the downside as the exchange rate clears the May-low (1.1107) following the Federal Reserve rate cut in July, with the 1.1100 (78.6% expansion) handle no longer offering support.
However, recent developments in the Relative Strength Index (RSI) point to a larger rebound in the exchange rate as the oscillator breaks out of the downward ward trend carried over June.
In turn, the failed attempt to test the 2019-low (1.0926) may open up the topside targets as EURUSD tags a fresh monthly-high (1.1087), but need a break/close above the 1.1100 (78.6% expansion) handle to bring the 1.1140 (78.6% expansion) region on the radar.
Next area of interest comes in around 1.1190 (38.2% retracement) to 1.1220 (78.6% retracement) followed by the Fibonacci overlap around 1.1270 (50% expansion) to 1.1290 (61.8% expansion