• EUR/USD fades bounce off 16-month low, struggles to justify bullish candlestick formation.
• Oversold RSI conditions, multiple supports challenge further downside.
• Previous support line from October, 10-DMA will test corrective pullback.

EUR/USD remains pressured around the lowest level since July 2020, a lackluster near 1.1445 during Monday’s initial Asian session. In doing so, the major currency pair struggles to justify the previous day’s Doji candlestick formation suggesting a corrective pullback.

Even so, nearly oversold RSI conditions and multiple supports to the downside keep EUR/USD buyers hopeful to challenge the support-turned-resistance line from October, near 1.1485.

Should the quote’s anticipated rebound crosses the 1.1485 hurdle, the 10-DMA figure of 1.1517 will test the pair buyers ahead of directing them to the monthly high near 1.1620.

It’s worth noting that the EUR/USD bulls will remain doubtful until witnessing a clear break of October’s high around 1.1695.

Meanwhile, the further downside will aim for the previous day’s low of 1.1432, a break of which will direct EUR/USD towards June 2020 top, surrounding 1.1422.

In a case where the pair remains weak past 1.1422, a descending support line from June, near 1.1410 and the 1.1400 threshold will be in the spotlight.

To sum up, EUR/USD bears seem to have tired and Friday’s Doji may trigger the much-awaited rebound considering RSI conditions. However, multiple hurdles do challenge the bull’s entry.

EUR/USD: Daily chart

Trend: Corrective pullback expected