The rally from 1.0951 to 1.1233 stopped dead at the 100-day moving average and prices turned back down. EURUSD is currently trading around 1.1140 in the early European session on Friday.
Momentum weakened as the RSI reversed at 60 following a strong rise from below 50. The indicator is flat now around the 50 level which suggests prices will likely consolidate in the near term. But the stochastic is falling and is indicating there is downside pressure in the market.
Prices would need to rise back above the 100-day moving average and the 1.13 level to regain the bullish momentum that was in place from 1.0951 to 1.1233, otherwise a further decline would confirm a top is in place at 1.1233. A drop below the 200-day moving average (1.1080) would form a lower peak following from the May top of 1.1615 and the June high of 1.1427. This would indicated that in the bigger picture the EURUSD is on a downward trajectory.
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