EUR/USD technical analysis: Eyes 1.09 after weakest daily close since May 2017

• EUR/USD extends bearish lower high, lower low setup with a weakest daily close since May 2017.
• The candlestick arrangement on the daily chart also indicates scope for deeper drop. 

The path of least resistance for the EUR/USD pair is to the downside. 

The currency pair closed at 1.0942 on Wednesday, its weakest daily close in over two years. As per the line chart, the pair has set a new lower low below Sept. 2's close of 1.0967. 

Further, the pair created a bearish marubozu candle on Wednesday, signaling a continuation of the sell-off from the recent lower high of 1.1110. 

Also, the 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print, having faced rejection at that neutral level on Sept. 17. 

All-in-all, the pair appears on track to the psychological support of 1.09. 

Daily line chart

Trend: Bearish

Technical levels