EURUSD is losing considerable ground after the pullback from the 1.2350 resistance, heading towards the 1.2000 psychological number. The short-term simple moving averages (SMAs) are endorsing the bearish structure, as do the Ichimoku lines. In terms of technical indicators, the RSI is pointing down and is approaching the 30 level, while the %K line of the stochastic oscillator posted a bearish cross with the %D line.
A drop below the 1.2000 handle could take the price until the 1.1915 support registered on November 30. Even lower, the price could hit the 1.1800 round number, taken from the bottom on November 23.
On the flip side, an upside correction could find immediate resistance at the 1.2050 barrier, which overlaps with the 20-period SMA. Above that, the 40-period SMA at 1.2085, which stands near the descending trend line, would come next ahead of the 200-period SMA at 1.2115. If buying interest persists, traders could move towards 1.2155 and 1.2190, shifting the bearish bias to neutral.
All in all, EURUSD has been in bearish mode over the last month and only a climb above the downtrend line may change this outlook.
