EURUSD followed a series of bearish days after failing to breach the descending trend-line drawn from the 1.1411 peak, with the price dropping forcefully below the 1.1065 key support and into 1.1000-1.0950 restrictive area.
The fast-Stochastics have entered the oversold zone, while the RSI is ready to challenge its 30 oversold mark too, an indication that the bearish action could pause in the short-term. However, with the price trading comfortably below its moving averages, the market trend is likely to stay on the downside and any upside correction in the price may appear insufficient to put the pair back on the positive direction.
A reversal to the upside could meet immediate resistance around the 1.1113 level where the bullish action halted several times over the past two weeks. For a more attractive rally though, the market should overcome the downward-sloping line and jump above the previous high of 1.1163. On the way up, the 1.1200-1.1230 area would be the next target.
Alternatively, the price could inch down to touch a former support of 1.0950. Should the obstacle prove easy to get through, a tougher battle could start around 1.0830, where any break lower could open the door for the 1.0700 mark.
In the medium-term picture, Friday’s steep downfall resumed the bearish trend, with the falling 50-day simple moving average (SMA) reducing the odds for an outlook reversal.
In brief, EURUSD could keep trading in a negative note, unless the market manages to close above the descending trend-line.
