EURUSD is consolidating its gains within the 16-month trough of 1.1185 and the 1.1360 resistance level, with the level of the 20-day simple moving average (SMA) in the middle at 1.1280.
Regarding the technical indicators, the MACD is still moving above its trigger line in the negative region, approaching the zero level, while the RSI is sloping marginally up below the neutral threshold of 50. The 20-day SMA is looking ready for an upside turn, though the 40-day SMA is continuing the negative move.
Should the 1.1360-1.1387 resistance zone crack, the price could initially test the 23.6% Fibonacci retracement level of the down leg from 1.2348 to 1.1185 at 1.1460 and the descending trend line before heading towards the 1.1520 barrier. Running higher, the bulls will need to drive beyond the 38.2% Fibonacci of 1.1630 to access the 1.1695 high.
In the negative scenario, immediate support could come from the 16-month bottom of 1.1185. If there is a close below this hurdle, the 1.1015 support could prevent a sharper decline towards 1.0765, taken from the low on May 2020.
In brief, EURUSD is remaining exposed to downside corrections as the price is still moving beneath the long-term downtrend line. Only a climb above the 200-day SMA at 1.1765 may change this view.
