EURUSD remains under pressure and risk is still to the downside in the short-term as prices continue to drift below the 38.2% Fibonacci retracement level of the downleg from 1.1815 to 1.1110 near 1.1380. After the pullback on the three-month high of 1.1410, technical indicators reversed lower as well, suggesting a possible bearish bias again. The MACD oscillator is falling in the positive territory, while the stochastic is moving lower, approaching the 20 level.
If price action drops, there is scope to test the 20-day simple moving average (SMA) currently at 1.1300 before heading towards the 23.6% Fibo of 1.1275. Clearing this key level would see additional losses towards the 40-day SMA around 1.1240. Falling below this level the 1.1180 support could be the next level to watch.
On the flipside, if the pair surpasses the 38.2% Fibonacci mark, it could test the three-month high (1.1410). Above this barrier, the area within the 1.1450 and 1.1460, which encapsulates the 50.0% Fibonacci could attract traders’ attention, creating a higher high in the near term.
Overall, EURUSD is returning lower today, so investors could have a look for more bearish actions if it declines below the 23.6% Fibonacci region. Alternatively, a jump above 1.1410 could increase buying interest.
