EURUSD has declined after touching the 1.1470 resistance level once again, which overlaps with the falling trend line in the daily timeframe. In the short-term, the pair seems to be in neutral mode over the last one-and-a-half months.
Momentum indicators in the short-term though are currently supporting that neutral momentum. Specifically, the RSI indicator is pointing downwards above 50, while the MACD oscillator continues to stand slightly above the trigger and zero lines, weakening its movement, signaling slightly bullish mode.
Should the pair experience negative pressure, it could challenge the 20- and 40-day simple moving averages (SMAs) around the 1.1370 barrier before the price heads sharply lower towards the 1.1265 support level. In case of steeper declines, the pair could breach this trough, diving to the 17-month low of 1.1215, which was reached on November 13.
On the other side, in case of a climb above the 1.1470 – 1.1500 resistance level and the downtrend line, the price could hit the 23.6% Fibonacci retracement level of the downleg from 1.2550 to 1.1215, around 1.1530. More advances could send prices towards the 1.1620 resistance, taken from the high on October 16.
Concluding, the bearish picture in the long-term looks to persist for a while longer as the price failed several times to jump above the key 1.1500 handle. The downward pattern started at the end of March and may not change unless the market manages to crawl substantially above the descending line.
