EURUSD remains under pressure and the risk is still to the downside as prices continue to drift lower from the 20-day simple moving average (SMA) and the latest high of 1.0280. The short-term technical indicators are still holding in bearish territory. The RSI is pointing downwards below the neutral threshold of 50, while the MACD is rising above its trigger line in the negative region.
The next target to the downside is the parity level again, which the price failed to have a daily close beneath it. However, the price may meet the spike of July 14 that reached a new 20-year low at 0.9950. Further losses could open the way for a test of the return line of the downward sloping channel around 0.9800 ahead of the 0.9610 barrier, taken from the low in September 2002.
Upside moves are likely to find resistance at 1.0280. Rising above this area would help shift the focus to the upside towards 1.0345 before meeting the descending trend line, which is standing near the 40-day SMA at 1.0400. Breaking this level could see a re-visit of the 1.0635 high and turn the bias to bullish.
In the medium-term, the bearish phase remains in play especially if prices continue to trade within the channel and below the SMAs.