EUR/USD slumped to a fresh two-decade low below 0.9800. Next line of defence aligns at 0.9750, FXStreet’s Eren Segenzer reports.

Euro is likely to stay on the backfoot

“With a four-hour close below the 0.9750 level, additional losses toward 0.9700 and 0.9660 (August 2002 low) could be witnessed.”

“On the four-hour chart, the Relative Strength Index (RSI) indicator stays well below 30, suggesting that the pair could make a technical correction before the next leg lower. In that case, 0.9800 (static level, former support) could be seen as first hurdle before 0.9880 (static level, 20-period SMA) and 0.9900 (psychological level).”