EUR/USD Technical Analysis: Dead cat bounce likely

• The EUR/USD could revisit 1.16-1.1620 before resuming the drop as the hourly chart is showing a bullish divergence of the relative strength index (RSI).
• The hourly RSI has also breached the descending trendline in favor of a minor corrective rally. However, the overall bias is bearish as indicated by the downward sloping Bollinger bands.

Hourly chart

Spot Rate: 1.1585

Daily High: 1.1590

Daily Low: 1.1581

Trend: Dead cat bounce

Resistance

R1: 1.1602 (July 18 low)

R2: 1.1643 (50-hour moving average)

R3: 1.1670 (100-hour moving average)

Support

S1: 1.1575 (July 19 low)

S2: 1.1527 (June 28 low)

S3: 1.1508 (June 21 low)