EURUSD lost significant momentum over the previous couple of days after the pullback on the 38.2% Fibonacci retracement level of the upleg from 1.0340 to 1.2550, around 1.1710. The world’s most traded currency is hovering near the 40-day simple moving average (SMA), while the technical indicators are still holding in the positive territory.
In the short-term the RSI indicator is sloping slightly to the upside with weak momentum and the MACD oscillator is moving sideways above the zero and trigger lines.
In case of further downside pressures, the next level for investors to have in mind is the 1.1530 support level, which stands near the 20-day SMA. Further losses could drive the price until the 50.0% Fibonacci of 1.1446. Moreover, falling below this area there is a stronger barrier at 1.1300, taken from the low on August 15.
However, upside moves are likely to find resistance at the 38.2% Fibonacci of 1.1710 before being able to touch again the 1.1750 hurdle. A jump above this barrier would see a resumption of the bullish correction until the 1.1840 obstacle, where it topped on June 14.
Overall, EURUSD remains under pressure in the longer timeframe as it holds below the moving averages in the weekly chart and failed to surpass the 1.1750 resistance once again.
