EUR/USD Price Analysis: MACD offers strongest bearish signal since mid-November
|- EUR/USD's MACD histogram is at the lowest since mid-November.
- The pair looks set to extend the recent downtrend from 1.1240 to support at 1.0981.
EUR/USD has dropped from 1.1240 to 1.1020 over the last four weeks and may continue to exhibit pressure behavior this week as the MACD histogram is reporting the strongest bearish bias in over two months.
The daily chart indicator is currently printing a value of -0.00139, the lowest reading since Nov. 14. A negative number indicates bearish market conditions, while an above-zero print represents a bullish market.
The indicator is printing deeper bars below the zero line - a sign of the strengthening of bearish momentum.
The pair could challenge to 1.0981 (Nov. 29 low), under which sellers may attack next support near 1.0950.
The hourly chart relative strength index is currently reporting a bullish divergence. A bounce to 1.1062 (hourly chart hurdle) may be seen before a deeper drop is seen, as suggested by the daily chart.
At press time, EUR/USD is trading at 1.1035, representing moderate gains on the day, having hit a low of 1.1020 on Friday.
Daily chart
Trend: Bearish
Technical levels
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.