EURUSD has been in a bearish-to-neutral outlook from the beginning of the year and currently are approaching again the 20- and 40-day simple moving averages (SMAs) below 1.1800 in the short-term. After the pullback on the 1.1910 resistance, the price is heading south with the technical indicators mirroring the latest negative move. The RSI is falling in the negative region, while the MACD is slipping below its trigger line in the positive area.
If the pair declines underneath the SMAs, the next immediate support could come from the 1.1610-1.1665 zone. Steeper decreases could open the door for the 1.1420 barrier, taken from the inside swing high on June 10.
On the flip side a rise back into the Ichimoku cloud could meet the 1.1910 and 1.1975 resistances, which holds around the strong 200-day SMA at 1.1990. Any advances may drive the market until the upper boundary of the descending channel near 1.2180 before challenging the almost five-month peak of 1.2267.
To sum up, EURUSD is slightly negative in the broader view and any moves below the channel could open the way for a stronger bearish picture.
Origin: XM
