EUR/USD is oversold

Overall, the EURUSD is still trading lower, but the previous slump has leveled off (as I predicted earlier) after the previous sharp decline. It is currently trading at 1.0676, having previously touched 1.062, up 0.18% on the day. As markets weigh the escalation of the situation in the Middle East over the weekend, the overall decline in the US dollar and improvement in risk appetite bodes well for the pair. Focus turns to EU and US data.

The Relative Strength Index (RSI) indicator on the 4-hour chart remains below 30, suggesting that EUR/USD remains technically oversold.