Technical Analysis – EURUSD’s selling interest continues below 1.20

EURUSD failed several times in the past three days to successfully surpass the 1.1985 crucial resistance and the 1.2000 handle. The price has been in a descending movement since January, remaining below the 100-day simple moving average (SMA) and the Ichimoku cloud. The RSI is flattening in the positive region, while the stochastic is looking overstretched as it is turning lower above the 80 level.

A break of the 1.1985 obstacle and the 1.2000 handle could shift the bearish bias to neutral, meeting the 1.2240 resistance. Above these levels, the 32-month high of 1.2348 could come next before touching the 1.2400 round number, taken from the peaks on April 2018.

On the other hand, if the bears push the pair lower, it could find immediate support at the 23.6% Fibonacci retracement level of the upward move 1.0635-1.2348 at 1.1945. Slightly lower, the 40- and 20-day SMAs at 1.1900 and 1.1850 respectively could attract attention ahead of 1.1830. Breaching these barriers, the market could find supports at 1.1745 and the 38.2% Fibonacci of 1.1695.

Summarizing, EURUSD is in a negative mode in the short-to-medium-term outlook and any decreases below the lower boundary of the downward channel could endorse a stronger bearish move.

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