Technical Analysis – EURUSD bearish in the short-term but little changed in the big picture
|EURUSD is bearish in the short-term but is little changed in the big picture with little signs of a reversal in the underlying bull trend.
The market is currently testing the 50-day moving average after breaking below the 23.6% Fibonacci retracement level of the rise from 1.0820 to 1.2091. The intra-day bias is tilted to the downside with scope to target the 38.2% Fibonacci at 1.1603 and then support at the 50% retracement at 1.1453. A further extension lower from here would bring prices to a critical level at 1.1300 (near the 61.8% Fibonacci). A move below this area would shift the overall trend to bearish.
A daily close above the immediate resistance level at 1.1792 would weaken the near-term bearish bias and turn the market’s focus back to the upside with scope to re-test the 1.2091 peak, the highest in almost 3 years. From this point, the odds are high for a move towards 1.2500.
The medium-term technical picture still remains positive and the 50 and 200-day moving averages maintain a bullish alignment. The shorter-term bias is weaker as the market remains capped below 1.1880.
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.