- EURUSD holds beneath downtrend line in short-term
- 20- and 200-day SMAs post death cross
- Long-term view is still bullish
EURUSD is struggling to continue the rebound that started from the 1.0725 support level and the medium-term ascending trend line. Currently, the market is losing momentum indicating a potential downside movement again.
The 20-day and 200-day simple moving averages (SMAs) are on the verge of forming a death cross, confirming a decline. Moreover, the RSI indicator is currently pointing south below the neutral threshold of 50, while the MACD is showing a continuation of its bearish pattern below both its trigger and zero lines.
If the price movement were to reverse, immediate support could once more be found at 1.0725. Steeper decreases could test the 1.0655 barrier serves as an additional important line ahead of the 1.0515 barrier, achieved on November 1.
In the upward direction, the bearish intersection of the SMAs at 1.0830, which coincides with the short-term descending trend line, presents immediate resistance. Beyond that point, the 50-day SMA at 1.0890 emerges as the subsequent significant obstacle to monitor. With a higher run, the 1.1000 round number might put a stop to bullish moves.
Summarizing, in the near-term EURUSD structure is negative; nevertheless, the pair is establishing above the uptrend line over the medium term and any climbs above 1.1000 could endorse the longer-term bullish view.
