EURUSD has come under renewed selling pressure over the last five trading days, slipping below the 1.1820 key level. The price remains under pressure and risk is still to the downside as prices continue to drift lower, hitting a new 5-month low of 1.1739. The short-term technical indicators are bearish, pointing to more weakness in the market.
Having a look at the daily timeframe, the single currency is developing well below the 20- and 40-simple moving averages (SMAs) versus the greenback. The RSI indicator declined below the 30 level, signaling further losses, while the MACD oscillator fell below the trigger line and is strengthening its negative momentum.
Immediate support is being provided by the 38.2% Fibonacci retracement level around 1.1720 of the upleg from 1.0340 to 1.2554. Moreover, should prices dip lower again, the next support would likely come from the 1.1550 barrier, taken from the low on November 2017.
In case of an upward attempt, EURUSD would likely meet resistance at the 1.1820 barrier. A break above this level, would ease the downside pressure, and touch the 20-day SMA around 1.1950. Further gains could drive the pair towards the 23.6% Fibonacci mark of 1.2030 and would help turn the short-term bias to a slightly positive one.
In the medium-term, the bullish outlook turned to bearish as the price dropped below the significant 1.2160 hurdle, which was acting as strong support of the trading range 1.2160 – 1.2540. Also, the price completed the fifth straight negative week.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.