EURUSD is currently building another tiny red candle within the strong boundaries of 1.1400 and 1.1356. Technically, the pair could continue to slide sideways as long as the RSI fluctuates around its 50 neutral mark and the MACD barely moves around zero and its red signal line. The falling 20-day moving average (MA) though, could be a negative sign that the rebound on the 3-month low of 1.1233 has probably come to an end.
The 23.6% Fibonacci of 1.1356 of the downleg from 1.1814 to 1.1214 was rejecting bearish movements the previous week and therefore should be in focus if the market comes under renewed selling pressure. Below that area, the price could overcome the 20-day MA to challenge support between 1.1300 and 1.1265, while lower the bears could bottom at 1.1214.
Alternatively, a reversal to the upside could initially test the 1.1400 resistance and then the 38.2% Fibonacci of 1.1444. Moving higher, all eyes will shift to 1.1500, where the 200-day MA meets the 50% Fibonacci. Should the market clear this area and more importantly violate the 1.1569 peak, steeper gains could follow, with the neutral medium-term picture switching to bullish as well.
Summing up, EURUSD holds a neutral profile both in the short and medium-term picture.
