EURUSD rebounded off the 1.1780 support level, trying to meet the short-term 20-day simple moving average (SMA). However, today, the pair is losing some steam, driving the RSI lower in the negative territory. Despite the latest move, the MACD is surpassing the trigger line in the bearish region, while the stochastic is still moving north.
Immediate support for steeper declines could come from the 1.1780 barrier ahead of the 1.1700 psychological number. Overcoming these obstacles, the 1.1610 barrier, taken from the low in November 2020, could come into the spotlight before slipping to 1.1420, being the inside swing high from June 2020.
On the other side, a step above the 20-day SMA could take the market until the 1.1985 resistance, marginally beneath the 200-day SMA at 1.2000. Above this level, the 40-day SMA at 1.2040 and the upper surface of the Ichimoku cloud could come next at 1.2160. Rising higher, the almost five-month high of 1.2267 may halt the bullish actions.
Summarizing, EURUSD has been in a descending mode since May 25, but the broader outlook seems to be neutral.
