Tough for markets to stay oversold without a good reason but bounce likely to be shallow.
The hourly RSI in EUR/USD has fallen to 23, the lowest since March 30.
I tend to ignore oversold/bought indicators when something fundamental has happened in the market but the moves today are tough to tie to any significant news. To me, that makes a bounce a bit more likely.
EURUSD with RSI
On the flipside, you could argue that technicals are the reason after the break of 1.07 and next-to-no support until near 1.0600.
What's next.
I expect to see a 20-30 bounce, and perhaps even a retest of 1.0700 in the next 12-18 hours but I think that rather than buying this dip, it's a better trade to sell that bounce.