EURUSD is flirting with the 1.0670 support level, falling below the medium-term upward sloping channel and the short-term simple moving averages (SMAs). The MACD oscillator is weakening below its trigger line and near the zero level, while the RSI is moving sideways below the neutral threshold of 50.
If price action remains above 1.0670 (immediate support), there is scope to test the 50- and then the 20-day SMAs at 1.0710 and 1.0815 respectively. Clearing these key levels would see additional gains towards the 1.1000 psychological mark and the previous nine-month top at 1.1032. This is considered to be a strong resistance area which has been tested a few times in the past. Rising above it would see prices re-test the 1.1180 barrier, taken from the peak in March 2022.
If 1.0670 support fails, then the focus would shift to the downside towards 1.0480, shifting the bias to neutral. More declines would increase downside pressure, meeting the 200-day SMA at 1.0320 and bringing about a reversal of the trend.
Overall, EURUSD has been bullish despite the latest downside move. Near-term weakness is expected to remain as long as price action takes place in the lower end of the ascending channel.
