EUR/USD hovers near 1.1200; maintains weak bias in near term
|EURUSD has been under pressure over the last three weeks as it failed several times to jump above the short-term simple moving averages (SMAs) and the 23.6% Fibonacci retracement level of the downleg from 1.1815 to 1.1106 near 1.1275.
Short-term momentum indicators are pointing to a continuation of the bearish bias. The RSI bounced off the neutral threshold of 50 and is edging lower, while the MACD oscillator is strengthening its movement to the downside below trigger and zero lines.
On the way down, the bears would likely pause near the 1.1200 handle again before meeting the 1.1180 support area. Traders could increase selling sentiment below the latter level, testing the two-year low of 1.1106, achieved on May 23.
On the other side, if the pair successfully surpasses the 1.1275 – 1.1285 resistance zone, it would take the market towards the 38.2% Fibonacci of 1.1380. A decisive close above this line could open the door for the 1.1410 high, penetrating the long-term descending channel.
In the bigger picture, this channel has been developing since January and only a significant jump above the 61.8% Fibonacci region of 1.1545 could shift the bearish outlook to bullish. However, in the very short-term, EURUSD is trading sideways within 1.1200 – 1.1285.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.