Technical Analysis – EURUSD takes a breather after sharp tumble
April 17, 2024 1:28 pm
EURUSD tumbles and breaks out of sideways range
Despite the brief pause, the outlook remains negative
MACD and RSI detect negative momentum
A break below 1.0610 could target 1.0520
EURUSD came under strong selling interest last week following the hotter-than-expected US CPI data, breaking below 1.0725, the lower bound of a sideways range that was containing most of the price action since mid-November. Today, the pair seems to be taking a breather slightly above the 1.0610 barrier, but the short-term outlook remains negative.
Both the MACD and the RSI are detecting bearish momentum corroborating that view. The former is lying below both its zero and trigger lines, while the latter is running well below 50. That said, the RSI has just poked its nose above 30, which suggests that some further recovery cannot be ruled out before the next leg south.
The bears may recharge from near the 1.0665 level, or even test the 1.0725 zone as a resistance this time and drive the action back down for another test near 1.0610. If they are able to overcome that hurdle, the downfall may extend towards the 1.0520 area, which offered support back on October 26 and November 1.
On the upside, a break back above 1.0725 may signal the pair’s return with the aforementioned range and shift the outlook back to neutral. Even if the bulls stay in charge for a while after that, for the picture to be painted with positive colors, EURUSD may need to climb all the way above the 1.0930 barrier. Such a move may pave the way towards the round number of 1.1000.
To sum it up, EURUSD has suffered massive losses lately, exiting a sideways range to the downside. Despite the brief pause, the outlook remains negative and the chances of further declines elevated.
EURUSD tumbles and breaks out of sideways range
Despite the brief pause, the outlook remains negative
MACD and RSI detect negative momentum
A break below 1.0610 could target 1.0520
EURUSD came under strong selling interest last week following the hotter-than-expected US CPI data, breaking below 1.0725, the lower bound of a sideways range that was containing most of the price action since mid-November. Today, the pair seems to be taking a breather slightly above the 1.0610 barrier, but the short-term outlook remains negative.
Both the MACD and the RSI are detecting bearish momentum corroborating that view. The former is lying below both its zero and trigger lines, while the latter is running well below 50. That said, the RSI has just poked its nose above 30, which suggests that some further recovery cannot be ruled out before the next leg south.
The bears may recharge from near the 1.0665 level, or even test the 1.0725 zone as a resistance this time and drive the action back down for another test near 1.0610. If they are able to overcome that hurdle, the downfall may extend towards the 1.0520 area, which offered support back on October 26 and November 1.
On the upside, a break back above 1.0725 may signal the pair’s return with the aforementioned range and shift the outlook back to neutral. Even if the bulls stay in charge for a while after that, for the picture to be painted with positive colors, EURUSD may need to climb all the way above the 1.0930 barrier. Such a move may pave the way towards the round number of 1.1000.
To sum it up, EURUSD has suffered massive losses lately, exiting a sideways range to the downside. Despite the brief pause, the outlook remains negative and the chances of further declines elevated.
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