EURUSD plunged to a new one-month low of 1.1737, posting a spike below the strong barrier of 1.1753. The selling interest started after the pull back from the 1.1900 handle and the price declined beneath the simple moving averages (SMAs). The MACD is falling below its trigger and zero lines, however, the RSI is trying to turn north in the bearish zone.
Should the pair stretch south, 1.1695 could provide immediate support before the pair touches the 1.1625 inside swing high, taken from October 2018. A significant step lower could bring the bearish sentiment back into play, sending the price probably towards 1.1540.
On the flip side, the 200-period SMA currently at 1.1834, which overlaps with the 40-period SMA and the lower surface of the Ichimoku cloud could be the next targets. If traders continue to buy the pair, the price could rise until the upper surface of the cloud of 1.1880 and the 1.1900 round number.
Summarizing, EURUSD has been trading neutral in the medium-term picture and bearish in the very short-term timeframe.
