The US dollar softened after a drop in August’s Markit manufacturing and services PMI.
The pair’s break below the daily support at 1.1710 has put the bulls on the defensive. Though the RSI’s oversold situation triggered the buy-the-dips mentality going into the weekend.
The single currency has managed to lift 1.1740, opening the door to the key supply zone at 1.1800. A bullish breakout may initiate a reversal.
Otherwise, a drop below 1.1710 may keep the euro under water for an extended period of time.
