EURUSD has managed this week to break the 1.1303 support level, providing a signal for further downside movements. So, the medium-term trend of EURUSD is a downtrend technically justified by the fact that the price is currently trading below the valid downtrend line.
Moving average analysis confirms the downtrend upon bearish cross of 20-SMA below the 50-SMA. In addition, a bearish cross of MACD oscillator below its trigger line is observed in the negative territory, indicating a sell signal.
Should the price fall further, the low at 1.1117 comes into view as an immediate support level, while even lower, bears may target at 1.0840 price level.
On the other hand, if the price moves higher, beyond 1.1303, the 1.1623 price level could provide resistance, near the weekly downtrend line, while a successful break above this, would shift focus to the 1.1819 barrier.
To sum up, both the medium- and long-term picture of EURUSD is mainly negative.
The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Petros currently works as a Broker at an investment firm in Cyprus. His experience focuses on teaching of economics at a high school level and on the preparation of technical analysis reports for intra-day, daily and medium-term trends on indices, futures/commodities and FX spots. Petros holds an MSc in Economic Analysis and a BSc in Economics both from the University of Cyprus. Currently, he is an Associate Member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).