Posted on March 3, 2015 by the XM Investment Research Desk at 7:39 am GMT
EURUSD bias is back on the downside after a tumble to 1.1159 yesterday. It is capped below the 61.8% long term Fibonacci retracement level of 1.1210 of the upleg from 0.8225 (in 2000) to 1.6038 (in 2008). The January 26 low of 1.1096 now comes into focus. A bounce higher would be limited by resistance at the 21-day moving average at 1.1337. A break above 1.1680 would weaken the bearish bias.
Overall the trend is bearish as prices have been making lower highs and lower lows since the April 2014 peak of 1.3992. RSI remains in bearish territory below 50. As long as prices remain below the July 2012 low of 1.2040 and below the 50% Fibonacci, the outlook remains strongly bearish.