EURUSD is retreating beneath its 4-hour period simple moving averages (SMAs) but it looks ready to find strong obstacle at the longer-term ascending trend line in the next sessions. The RSI indicator is falling after the bounce off the 50 level, while the MACD is remaining below its trigger line around its zero level, failing to strengthen the negative bias.
If the pair penetrates the diagonal line to the downside, it could hit the 1.2160 support and the 1.2130 barrier, which stands near the 200-day SMA. In case that selling interest persists, the outlook could turn to bearish, hitting 1.2065.
Alternatively, a successful climb above the short-term SMAs, could open the door for the price to test again the five-month high of 1.2240 and then the 1.2350 obstacle, registered in January 6.
Summarizing, EURUSD has been losing momentum over the last couple of sessions, creating a bearish correction of the long-term bullish structure.
