EURUSD has been travelling in a downward sloping channel since June 17, standing around the 20- and 40-period simple moving averages (SMAs). The RSI is moving horizontally around its mid-level; however, the MACD is still developing above its trigger line in the negative region.
Following a successful decline below the SMAs, the 1.1767 barrier could provide immediate support before meeting the lower surface of the declining channel at 1.1737. Further down, the five-month low of 1.1700 could serve as a strong support for the bearish pattern.
An advance over the Ichimoku cloud’s upper surface, on the other hand, could reach the 1.1880 resistance before settling at the 1.1970-1.1985 resistance.
Concluding, EURUSD is in a bearish structure and any declines below 1.1700 could take the market into steeper negative moves. However, a jump above 1.1880 could switch the outlook to neutral.
