EURUSD Sinks Below 1.1900 In Ascending Channel

Technical analysis of Forex market

EURUSD is diving further below the 1.1900 psychological level, approaching the lower surface of the upward sloping channel. The selling interest started after the pullback off the 1.2240 resistance, taking the market well below the short-term simple moving averages (SMAs) and the 100-day SMA. The RSI is heading towards the 30 level with strong momentum, while the stochastic is hovering in the oversold territory.

A successful fall beneath the ascending channel could take the price towards the 1.1745 support ahead of the 38.2% Fibonacci retracement level of the up leg from 1.0635 to 1.2348 at 1.1695. Beneath these lines, the 1.1610 support and the 50.0% Fibonacci of 1.1490 could come next.

On the other hand, if the bulls take the upper hand again and rebound off the lower band of the channel, the price higher towards the 1.1920 resistance and the 23.6% Fibonacci of 1.1945 could come next. Climbing higher, the 100-day SMA at 1.2025 and the 20- and 40-day SMAs around 1.2090 could halt bullish movements. More upside pressure could take the pair towards the 1.2240 resistance.

Summarizing, EURUSD has been moving south over the last couple of sessions in the short-term, though, in the bigger picture, the price remains in a bullish outlook until the break below the ascending pattern.