EURUSD’s bears are attempting to take control again after several failed endeavours to surpass the key 1.0000 level. Previously, the pair was unable to find sufficient buying interest to exit the 2022 downward-sloping channel, and the momentum indicators are currently warning that there might be additional bearish occurrences in the near future. The MACD looks ready to re-activate its negative wave below its red trigger and zero lines, while the RSI is approaching its 30 oversold level.
In the bearish scenario, the decline may gather substantial pace towards the 0.9835 support, taken from the lows in September 2002. In the event the gloomy outlook continues to deteriorate from this point forward, attention will swiftly shift to the inside swing highs in June and April 2000 at 0.9780 and 0.9700 respectively. Note that the channel’s bottom line is also in the area and may act as a strong support around 0.9600.
Alternatively, a bounce above parity could initially push for a close above the 1.0090 resistance with scope to reach the area between the short-term simple moving averages (SMAs) around 1.0130. Then, an advance above the descending trend line near 1.0200 may drive the pair towards the 1.0355 barrier.
Overall, the existing bearish move in EURUSD is anticipated to continue in the short term. Traders are likely to wait for a decisive break below the 20-year low of 0.9899 before they further reduce their exposure to the market.
