EUR/USD: Unable to advance beyond its moving averages

EUR/USD is finishing the week above the 1.0960, an immediate support level. Valeria Bednarik, a Chief Analyst at FXStreet, takes a look at the Euro/Dollar technical picture.

Key quotes

“In the long run, the risk remains skewed to the downside, as, in the weekly chart, the pair remains below all of its moving averages. The 100 SMA has crossed below the 200 SMA, both far above the current level.” 

“The daily chart shows that the Momentum indicator has resumed its decline near oversold readings, while the RSI lost directional strength within neutral levels, skewing the risk to the downside.”

“Below 1.0960, the next support comes at 1.0900, en route to 1.0835. Further declines could see the pair re-testing the mentioned low at 1.0635.”

“Resistances these next few days come at 1.1090, the weekly high, followed by 1.1165, where the pair has the 61.8% retracement of its latest plunge.”