Technical Analysis – EURUSD extends decline to a fresh 5-month low
EURUSD in a clear downtrend, posting a fresh 5-month bottom of 1.0614
The descending 50-day SMA is approaching 200-day SMA, setting the stage for a death cross
Momentum indicators are heavily skewed to the bearish side
EURUSD has been in a steady decline after peaking at the 18-month high of 1.1275 on July 18, generating a series of lower highs and lower lows. Meanwhile, the pair dived to a fresh five-month low of 1.0614 before recovering some ground, while the short-term oscillators are pointing to more losses.
Should the bears attempt to push the price lower, the five-month low of 1.0614 could prove to be the first barrier for the pair to clear. A violation of that floor could pave the way for the March bottom of 1.0515. Piercing through that region, the pair might then slide towards the November 2022 support zone of 1.0222.
On the flipside, if the pair reverses back higher, initial advances could be rejected at the recent resistance region of 1.0765. Even higher, the June-July support of 1.0832 may serve as strong resistance in the future before the 1.0944 gets tested. Failing to halt there, the pair could then ascend towards the February peak of 1.1032.
In brief, EURUSD seems to be stuck in a steep downtrend as the bulls continue to stay on the sidelines. However, things could get even worse in the case that a death cross between the 50- and 200-day simple moving averages (SMA) is completed.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
