Technical Analysis – EURUSD tests 1.0800 tricky area
EURUSD recoups gap and ticks up
But technical oscillators indicate negative move
The latest negative reversal in the RSI is discouraging, but the indicator is still in an upward move since bottoming out in the oversold region. Additionally, the MACD keeps recovering some distance above its red signal, suggesting that the bulls might have some fuel in the tank.
If resistance at 1.0850 stands firm, though, the pair could plummet again towards the 1.0800 mark. Dropping below the 200- and 50-day SMAs too would deepen the selling pressures, bringing into view 1.0760, ahead of the 20-day SMA at 1.0740. Then, if the bears breach the latter line, the bearish wave might pick up pace towards the eight-week low of 1.0665.
In the positive scenario, where EURUSD jumps above the 1.0850 resistance and the long-term downtrend line, traders might pay attention to the 1.0915–1.0940 region.
All in all, despite the positive mood in the market, the technical signals leave the door open to another bearish move.Related Assets
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