The US dollar tumbled after weaker-than-expected nonfarm payrolls in September.
The pair has struggled to bounce back over the past few weeks. The break below 1.2500, a major demand zone on the daily chart, is the straw that broke the camel’s back. 1.2430 is the next support. And its breach could trigger an extended sell-off towards July’s low at 1.2300.
As buyers bail out, high volatility has pushed the RSI into the oversold territory. A bounce is likely to be capped by 1.2600, and it could be an opportunity to sell into strength.
