The EUR/USD plummeted on Friday from the simple moving averages near 1.1130 to the 1.1090 level. On Monday, the currency exchange rate reached below the 1.1090 level.
In general, the rate was expected to continue to decline, as it had no technical support as low as the monthly simple pivot point at 1.1066 and the weekly S1 pivot point at 1.1061.
On the other hand, the recent sharp decline has left far above the rate the simple moving averages. It is a signal that the rate is oversold and should consolidate by retracing back up or trading sideways.
