EURUSD has been under pressure over the last three weeks as it failed several times to jump above the short-term simple moving averages (SMAs) and the 23.6% Fibonacci retracement level of the downleg from 1.1815 to 1.1106 near 1.1275.
Short-term momentum indicators are pointing to a continuation of the bearish bias. The RSI bounced off the neutral threshold of 50 and is edging lower, while the MACD oscillator is strengthening its movement to the downside below trigger and zero lines.
On the way down, the bears would likely pause near the 1.1200 handle again before meeting the 1.1180 support area. Traders could increase selling sentiment below the latter level, testing the two-year low of 1.1106, achieved on May 23.
On the other side, if the pair successfully surpasses the 1.1275 – 1.1285 resistance zone, it would take the market towards the 38.2% Fibonacci of 1.1380. A decisive close above this line could open the door for the 1.1410 high, penetrating the long-term descending channel.
In the bigger picture, this channel has been developing since January and only a significant jump above the 61.8% Fibonacci region of 1.1545 could shift the bearish outlook to bullish. However, in the very short-term, EURUSD is trading sideways within 1.1200 – 1.1285.