EURUSD has reversed back down again after finding resistance at the 1.0360 barrier and the descending trend line. Also, the pair retreated beneath the 20- and 40-day simple moving averages (SMAs) with the technical indicators suggesting a neutral to negative bias in the short-term. The RSI is holding just below the neutral threshold of 50, while the MACD is trying to strengthen its negative momentum below the zero level.
Further losses should see the 1.0095 level, acting as a major support ahead of the parity level and the 20-year low of 0.9950. A drop below these lines would reinforce the bearish structure in the long-term and open the way towards the next key support of 0.9608, registered in August 2002.
In the event of an upside reversal, the 20- and 40-day SMAs at 1.0210 and 1.0255 respectively could be the next resistance levels to have in mind ahead of the downtrend line and the 1.0360 hurdle. A break above this level would shift the short-term view to a more bullish one as it would take the pair towards the 1.0635 resistance.
All in all, EURUSD has been developing within a downward sloping channel since February and only an advance beyond the 1.0360 barrier may change the outlook to neutral. Currently, the pair is still in a strong negative mode in the long-term.
