EURUSD’s recent positive impetus off a 14-month low of 1.1523 is faltering in the vicinity of the 1.1600 handle. The diving simple moving averages (SMAs) are defending the short-term bearish trend in the pair.
The Ichimoku lines are indicating that negative momentum is picking up again. Furthermore, the pair is struggling to make strong headways past the 1.1600 barrier, something also being reflected in the short-term oscillators. The MACD, some distance below zero, has pushed over its red trigger line, while the RSI is struggling to improve in bearish territory. The stochastic %K line has dipped ahead of the 80 level, signalling that positive drive is dwindling.
If the decline in the pair prevails, instant friction could emanate from the red Tenkan-sen line at 1.1570 before the price retests the 14-month low of 1.1523. If selling interest intensifies and drives the price below the crucial support border of 1.1451-1.1496, the bears may then target the 1.1370 trough, identified on July 16. Another push lower could sink the pair as low as 1.1254, around the July 10 barrier.
Otherwise, if buyers start to push back, prompt resistance could transpire from the area between the nearby highs of 1.1618 and 1.1640 respectively, ahead of the border of 1.1664-1.1685. Conquering these obstacles, the approaching 50-day SMA at 1.1711, and the neighbouring 1.1755 high may try to impede gains from challenging the Ichimoku cloud and the 100-day SMA at 1.1811. Triumphing above the 1.1800 barricade, the price may then propel for the 1.1885-1.1900 resistance section.
Summarizing, EURUSD’s short-term descent seems to overpower current bullish pressures. A price climb above 1.1755 could feed upside drive, while a close below 1.1451 could bolster the negative picture.
