- EURUSD holds above medium-term downtrend line
- Oscillators indicate bearish structure
EURUSD appears to be maintaining a horizontal trajectory in the very short-term, trapped between the 1.0895 resistance level and the 1.0814 support. A paused state of directional momentum is reflected in the technical oscillators. The stochastic posted a bearish crossover within its %K and %D lines in the overbought territory, while the RSI is failing to jump above the 70 level.
To the upside, emanating pressure over the last couple of months has denied upside moves. If buyers manage to jump above the 1.0895 barrier, a revisit of the 1.0940 mark could unfold. Overcoming these constrictions could see resistance develop at the 1.0980-1.1000, which is acting as a crucial obstacle for traders.
Otherwise, if sellers drive the pair below the 1.0814 support it could interrupt the pair ahead of the penetrated descending trend line and the 200 and the 50-day simple moving averages (SMAs) around 1.0785. In the event selling interest persists, the key support of the 20-day SMA at 1.0765 could halt the decline. Should it fail to do so, the 1.0720 bar could confirm another bearish wave.
Summarizing, the 1.0895 and 1.0900 levels are the immediate obstacles the bulls need to overcome in order for the outlook to change to a bullish one.
