Last Thursday, “after its 14-day Relative Strength Index (RSI) had fallen to a deeply oversold 24.7, within range of its own multi-year lows — EZU bounced back to close last Thursday squarely at $40 per share. And while the fund managed to maintain its grip north of $40 through Friday’s close, there have now been three consecutive sessions where this level has been breached on an intraday basis,” according to Schaeffer’s.

EZU currently resides almost 5.5% below its 200-day moving average. The ETF likely needs to clear the $40 area to encourage new buyers to step in.

“Notably, the $40 region is something of a “double round number” for EZU, as this area is also home to a round 10% year-to-date decline (at $39.04). Also nearby is a 50% retracement of the fund’s rally from its June 2016 Brexit-era low to its January 2018 high, at $38.42,” said Schaeffer’s.

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