EUR/USD technical analysis: 5-day MA caps upside in Asia

EUR/USD is reversing lower from the 5-day MA hurdle.
The pair remains on track to test the recent low of 1.0989.

Omkar Godbole FXStreet Contributor

EUR/USD is currently trading at 1.1017, representing marginal losses on the day, having faced rejection at the descending (bearish) 5-day moving average at 1.1025 an hour ago.

The pair now risks falling below the Nov. 25 low of 1.1004 and test 1.0989, as suggested by the bearish lower high of 1.1097 established on Nov. 21.

Technical indicators are also indicating the path of least resistance is to the downside. The 14-day relative strength index is reporting bearish conditions with a below-50 print and the daily MACD histogram is again printing deeper bars below the zero line, a sign of strengthening bearish momentum.

The outlook would turn bullish if and when the pair rises above 1.1097, invalidating the lower highs setup.

The bearish case looks stronger if we take into account the previous week's bearish hammer and the weekly MACD's shallow bars above the zero line.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1017
Today Daily Change	-0.0007
Today Daily Change %	-0.06
Today daily open	1.1024

Trends
Daily SMA20	1.1064
Daily SMA50	1.1042
Daily SMA100	1.1083
Daily SMA200	1.1171

Levels
Previous Daily High	1.1026
Previous Daily Low	1.1006
Previous Weekly High	1.1098
Previous Weekly Low	1.1014
Previous Monthly High	1.118
Previous Monthly Low	1.0879
Daily Fibonacci 38.2%	1.1018
Daily Fibonacci 61.8%	1.1014
Daily Pivot Point S1	1.1012
Daily Pivot Point S2	1.1
Daily Pivot Point S3	1.0993
Daily Pivot Point R1	1.1031
Daily Pivot Point R2	1.1038
Daily Pivot Point R3	1.105

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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