EURUSD has reversed back down after finding resistance at the 29-month high of 1.2009 achieved on September 1.
The momentum indicators are pointing to a neutral to negative bias in the short term with the RSI standing in the negative territory and the MACD heading south below its trigger line. Moreover, the 20- and 40-day simple moving averages (SMAs) are posting a bearish crossover, indicating a reversal move.
Further losses should see the inside swing high from January 2019 at 1.1570 acting as major support. A drop below this level would reinforce the bearish structure in the near term and open the way towards the 38.2% Fibonacci retracement level of the up leg from 1.0635 to 1.2009 at 1.1495 ahead of the 50.0% Fibonacci of 1.1325.
In the event of an upside reversal, the 23.6% Fibonacci at 1.1687 could act as a barrier before being able to re-challenge the 1.1755 resistance. Further gains would lead the way towards the 1.1915 – 1.1960 area before meeting the multi-month high of 1.2009 again.
Concluding, EURUSD has been in a negative correction in the very short-term, while in the medium-term timeframe, the pair remains in a positive direction as it stands above the 200-day SMA.
