EURUSD sharpened its downside move after dropping out of the long-term ascending channel and the 1.1800 level.
The RSI is still pointing down below the 50 level, however, the stochastic oscillator is signaling an oversold market as it is turning higher in the negative territory. Meanwhile, the 20-day simple moving average (SMA) has bearishly crossed the longer-term SMAs and is heading south, providing negative trend signals for the market.
Additional downside movements could take the price until the nearby support of 1.1745, and then push it towards the 38.2% Fibonacci retracement level of the up leg from 1.0635 to 1.2348 at 1.1695. Below the latter, the 1.1610 support could come next into view ahead of the 50.0% Fibonacci of 1.1490.
Alternatively, a rebound off 1.1745 could send the pair towards the 23.6% Fibonacci of 1.1945 and the 1.1985 barrier. More advances from here, and a break above the 20- and 40-day SMAs could challenge the 100-day SMA at 1.2050. A bullish rally above the Ichimoku cloud, could start a battle with the 1.2240 hurdle.
Summarizing, EURUSD extends the pullback from the 32-month high of 1.2348, downgrading the near-term outlook as the price slips below the SMAs.
EURUSD sharpened its downside move after dropping out of the long-term ascending channel and the 1.1800 level.
The RSI is still pointing down below the 50 level, however, the stochastic oscillator is signaling an oversold market as it is turning higher in the negative territory. Meanwhile, the 20-day simple moving average (SMA) has bearishly crossed the longer-term SMAs and is heading south, providing negative trend signals for the market.
Additional downside movements could take the price until the nearby support of 1.1745, and then push it towards the 38.2% Fibonacci retracement level of the up leg from 1.0635 to 1.2348 at 1.1695. Below the latter, the 1.1610 support could come next into view ahead of the 50.0% Fibonacci of 1.1490.
Alternatively, a rebound off 1.1745 could send the pair towards the 23.6% Fibonacci of 1.1945 and the 1.1985 barrier. More advances from here, and a break above the 20- and 40-day SMAs could challenge the 100-day SMA at 1.2050. A bullish rally above the Ichimoku cloud, could start a battle with the 1.2240 hurdle.
Summarizing, EURUSD extends the pullback from the 32-month high of 1.2348, downgrading the near-term outlook as the price slips below the SMAs.
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