EURUSD is currently trading below the 1.1200 level that kept bears in check in the previous two sessions, with the RSI and the MACD suggesting more downside to follow as the former is losing momentum below its 50 neutral mark and the latter is weakening below its red signal line.
Should the market come under stronger negative pressure, the 1.1110 bottom could prove tough to break through as it did earlier this year. If not, the selling may get new legs, with support coming next somewhere between 1.10-1.0950.
Alternatively, the market would need to overcome the May 13 high of 1.1262 to improve buying confidence until the 1.1320-1.1346 area. Higher and comfortably above the 200-day simple moving average (SMA), the bullish action may pick up steam towards the 1.1418-1.1450 zone.
Meanwhile in the medium-term picture, which looks at the three-month performance, the sentiment could turn from neutral to positive if the price manages to climb above 1.1450. However, the discouraging movement in the 50-day SMA, which trends below the 200-day SMA, signals that chances for an outlook reversal are currently slim.
In brief, EURUSD is currently looking bearish in the short-term and neutral in medium-term.
