The euro stabilized as the eurozone’s retail sales in June (yoy) beat expectations. The pair has met stiff selling pressure at the 20-day moving average (130.50).
The RSI divergence acted as a warning sign when price action was in the supply zone. The confirmation came in the form of a break below 129.60. The RSI has recovered into the neutral area, as a temporary rebound for the bears to sell into strength.
130.20 is key resistance, and a drop below 128.80 could trigger a wave of sell-off to 127.00.
