EURUSD continues its descent, reaching a new low for the past 5 months.
- EURUSD in a clear downtrend, posting a fresh 5-month bottom of 1.0614
- The descending 50-day SMA is approaching the 200-day SMA, setting the stage for a death cross
- Momentum indicators are heavily skewed to the bearish side
EURUSD has been in a steady decline after peaking at the 18-month high of 1.1275 on July 18, generating a series of lower highs and lower lows. Meanwhile, the pair dived to a fresh five-month low of 1.0614 before recovering some ground, while the short-term oscillators are pointing to more losses.
Should the bears attempt to push the price lower, the five-month low of 1.0614 could prove to be the first barrier for the pair to clear. A violation of that floor could pave the way for the March bottom of 1.0515. Piercing through that region, the pair might then slide towards the November 2022 support zone of 1.0222.
On the flip side, if the pair reverses back higher, initial advances could be rejected at the recent resistance region of 1.0765. Even higher, the June-July support of 1.0832 may serve as strong resistance in the future before the 1.0944 gets tested. Failing to halt there, the pair could then ascend towards the February peak of 1.1032.
In brief, EURUSD seems to be stuck in a steep downtrend as the bulls continue to stay on the sidelines. However, things could get even worse in the case that a death cross between the 50- and 200-day simple moving averages (SMA) is completed.