EURUSD has been on a downward trajectory lately after the recent decline from the 1.1830 high and under the simple moving averages (SMAs), but the pair encountered support near the 1.1700 level and has subsequently rebounded a little. The diving 20-period SMA promotes further losses, while the slowing downward pace of the 100- and 200-period SMAs endorse a horizontal shift in the price.
Moreover, the short-term oscillators display conflicting signals in directional momentum. The MACD, in the negative section, is falling below its red trigger line, while the stochastic oscillator maintains a negative bearing, both sponsoring additional descents. Yet, the RSI has bounced off the 30 mark and is pointing upwards, reflecting strengthening momentum.
If sellers retake control, early downside limitations may evolve from the zone between the 1.1695 and 1.1684 lows. Successfully slipping past this obstruction may see the 1.1665 barrier attract some attention. Steering deeper may then send the price towards the 1.1642 obstacle ahead of the 1.1611 vital trough. Failing to halt a negative shift could stretch the price initially to the 1.1580 border, from July 24.
If buyers manage to drive the pair higher, first constraints may occur from the nearby 100-period SMA at 1.1732 and the neighbouring 1.1740 level. Overrunning these, the price faces a resistance section from 1.1757 to 1.1770, which also contains the 20-period SMA at 1.1762. Additional gains may then challenge the 200-period SMA at 1.1783, which if broken, may initiate a run-up towards the region of peaks from 1.1816 to 1.1830. Should the 1.1830 also be conquered, buyers’ efforts may then be tested by the 1.1871 to 1.1916 region of tops.
Summarizing, EURUSD holds a neutral-to-bearish tone below the 200-period SMA and the 1.1830 peak. Furthermore, negative tendencies may spark worries past the 1.1611 trough, yet if the pair remains above 1.1695, a horizontal market could evolve.
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