Technical Analysis – EURUSD reflects weakening bearish bias; eyes on 20-SMA



EURUSD kicked off the week with soft performance and barely above last week’s low of 1.1751, maintaining a downward direction below the 20-day simple moving average (SMA).

While the gentle upward trajectory in the RSI and the MACD, which coincides with a weakening price action, reminds of a bullish divergence, and hence raises some optimism that an upside reversal could soon take place, some caution is still required as the former continues to trade below its 50 neutral mark and the latter has yet to grow in the positive area. The negative slope in the red Tenkan-sen line is another discouraging signal.

A sustainable break above the 20-day SMA at 1.1820 could ease precautionary thinking, helping the price to revisit its previous resistance territory of 1.1880. Running higher, the 1.1936 – 1.1974 zone may add stronger downside pressures, deterring any move towards the crucial 1.2000 level, where the 200-day SMA is currently placed.

Alternatively, the pair could head for the March low of 1.1703, a break of which may cause a more aggressive sell-off towards the 1.1600 level and an outlook deterioration in the medium-term picture. Lower, the door would open for the former resistance area of 1.1455.

In brief, EURUSD seems to be facing a weakening bearish bias in the short-term picture. A decisive close above the 20-day SMA and the 1.1820 number is expected to trigger the next bullish wave.


Latest News

Eurozone economic sentiment on the radar; euro flirting with $1.17 – Forex News Preview



US Open Note – Dollar gains notable ground; oil continues the rise  



Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.