👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

EUR/USD falls below 200-day SMA, fresh lows in sight

Published 09/04/2023, 06:03 AM
Updated 05/01/2024, 03:15 AM
EURUSD has been in a steady decline after peaking at the 18-month high of 1.1275 on July 18, generating a series of lower highs and lower lows. Besides that, the pair has dived beneath its 200-day simple moving average (SMA), which is further deteriorating the technical outlook.
EUR/USD

The momentum indicators currently suggest that the bearish forces are in control. Specifically, the RSI is hovering well below its 50-neutral threshold, while the stochastics are descending close to their 20-oversold mark.

Should the decline below the 200-day SMA extend, the recent support of 1.0765 could act as the first line of defense. A break beneath that region could open the door for fresh lows, where the May bottom of 1.0633 might curb further declines. Failing to halt there, the price may move lower to challenge the March bottom of 1.0515.

Alternatively, if the pair reverses back higher, the bulls could attack the recent resistance of 1.0944, which overlaps with the lower boundary of the Ichimoku cloud. Violating that territory, the price may face the February high of 1.1032. Should that hurdle also fail to provide resistance, the spotlight could turn to 1.1094, which held strong three times in April.

In brief, EURUSD seems to be stuck in a downtrend as the bulls continue to stay on the sidelines. For that bearish sentiment to alter, the pair needs to reclaim the 200-day SMA.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.