- EUR/USD is extending downside for the 2nd consecutive session after upside was capped below strong trendline resistance at 1.20.
- The major has breached 5-DMA support at 1.2033 and is currently trading 0.25% lower at the time of writing.
- Technical indicators on daily charts are turning bearish. RSI has shown a rollover from overbought levels and is biased lower, while Stochs are on the verge of a rollover.
- We find strong support for the major at 1H 200 SMA at 1.1983, break below to see weakness accentuate.
- Scope then for test of 20-DMA at 1.1898, breach there will see further downside.
- On the upside, breakout above 1.20 will negate bearish bias.
Support levels - 1.1983 (1h 200 SMA), 1.19, 1.1897 (20-DMA)
Resistance levels - 1.2031 (5-DMA), 1.2085 (trendline), 1.2092 (Sept 8 high)
Recommendation: Good to go short on break below 1.1983, SL: 1.2040, TP: 1.19/ 1.1830
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -84.3103 (Bearish), while Hourly USD Spot Index was at 29.5825 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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