EURUSD has been heading south over the last few sessions, remaining well below the 1.1900 round number. The 20- and 40-period simple moving averages (SMAs) posted a bearish crossover, mirroring the recent action on price. The RSI is moving south near the oversold territory, while the MACD is extending its bearish movement beneath its trigger and zero lines.
If sellers drive the pair lower, the 1.1737 support level could interrupt the bears ahead of the five-month low of 1.1700.
To the upside, emanating pressure over the last couple of weeks has denied upside moves. If buyers manage to jump above the 1.1880 resistance and the short-term SMAs, a revisit of the 1.1970-1.1985 region could unfold. Overcoming these constrictions could see resistance develop at the 1.2050 swing high, which is in-line with the upper band of the cloud. Another leg up could tackle the 1.2145 resistance.
Summarizing, EURUSD posted a fresh three-month low earlier today, continuing the longer-term bearish structure.
Origin: XM
