Technical Analysis – EURUSD loses some ground after touching 33-month top

Melina Deltas, XM Investment Research Desk

EURUSD has been underperforming over the last couple of sessions, testing the 20-period simple moving average (SMA), in the 4-hour chart. The RSI indicator is falling and is approaching the 50 level, while the MACD is trying to slip beneath its trigger line, remaining above the zero level. Moreover, the Ichimoku lines are flattening, suggesting a possible downside correction.

Immediate support could come from the 20- and 40-period SMAs currently at 1.2290 and 1.2270, respectively. Slightly below these lines, the Ichimoku cloud could act as a crucial support ahead of the 200-period SMA around the 1.2220 barrier. More downside pressure could open the door for 1.2125 and the 1.2000 handle.

On the other hand, a rebound on the 20-period SMA could meet the 33-month peak of 1.2350 again before creating a new bullish rally towards 1.2410, registered in April 2018. If the bulls take the price higher, resistance could come at 1.2480, being the high from March 2018.

Summarizing, EURUSD still has an upside tendency despite the latest downside move in the very short-term timeframe.