- EUR/USD slips from 5-month high
- RSI and MACD decline in overbought territories.
EUR/USD is retreating after it has gained more than 5% since February 28, sending the market toward a new five-month high at 1.0945.
The technical oscillators are also currently supporting the downward momentum. The RSI is falling into the overbought territory, trying to cross the 70 level to the downside, while the MACD is easing above its trigger and zero lines.
The first support could come from the 61.8% Fibonacci retracement level of the down leg from 1.1215 to 1.0176 at 1.0814 ahead of battling with the flat 200-day simple moving average (SMA) at 1.0730. A successful drop below this line could switch the outlook back to a bearish one in the short term, meeting the 1.0630–1.0680 support region while encapsulating the return line of the breached ascending channel.
In the event of another bullish wave, the bulls would need to contend with the latest peak at 1.0945 and the significant 1.1000 psychological mark. More increases could take the pair until the 1.1070 barrier, taken from the inside swing low in September.
To sum up, EUR/USD has turned the bearish outlook to a bullish one over the last few weeks in the near term. But there are signs of a negative retracement.