EURUSD continues the negative tendency over the last eight months and has been stuck below the 20- and 40-day simple moving averages (SMAs). Looking at momentum indicators, the RSI is pointing slightly up but is below its neutral threshold of 50, while the MACD also remains in negative territory while moving above its red signal line.
Should the pair experience more negative pressure, the market could meet support at the 17-month low of 1.1215, before the price heads sharply lower towards the 1.1115 mark, identified by the lows on June 2017. In case of steeper declines, the pair could breach this trough, diving to 1.0830, which was reached in May 2017.
In case of a climb above the aforementioned lines, the price could challenge the 1.1500 strong psychological level, registered on November 7. Slightly above this region, the 23.6% Fibonacci retracement level of the downleg from 1.2550 to 1.1215, around 1.1530 could be next level to focus on, before touching the descending trend line.
Overall, the bearish picture in the long-term looks to persist for a while longer as EURUSD has been developing in a downtrend since March of the current year.
Origin: XM
