Technical Analysis – EURUSD plunges to new 2½-year low
- EURUSD may dive towards 1.0600 soon
- Remains well above uptrend line
- Stochastic and MACD head south
EURUSD is plunging towards a fresh two-and-a-half-year low of 1.0635, remaining beneath the long-term ascending trend line. A move towards and below the 1.0600 round number would confirm the switch of the broader outlook to a bearish one with the next support coming from 1.0520, registered in October 2023.
On the other hand, a successful rise above the 1.0665-1.0685 restrictive region could give the green light for a retest of the uptrend line at 1.0780 ahead of the 20-day simple moving average at 1.0810. Even higher, the flat 200-day SMA at 1.0870 could be the next significant pause of the upside move.
Technical oscillators mirror the latest decline in the market. The stochastic is approaching the oversold zone, while the MACD is extending its negative momentum beneath its trigger and zero lines.
To sum up, EURUSD is in the process of switching the bigger picture to bearish , but there first needs to be a break below the 1.0600 handle.
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