EURUSD turned positive after opening 1% lower but the intra-day bias has shifted back to the downside. Both the RSI and the stochastics are signalling downward pressure so the near-term bias for EURUSD is bearish.
Support would come at the May 27 low of 1.0818 – a break below this level could signal a shift out of its current range to a downward trend. Current indicators are looking mixed, supporting a neutral outlook in the medium term.
On the downside, prices are trading below the 50- and 200-day moving averages, and the tenkan-sen line has crossed below the kijun-sen line. While on the upside there is positive crossover of the 50-day moving average above the 100-day moving average. The Ichimoku cloud supports the neutral outlook with prices trading just within the sideways trending cloud.
An upward momentum could see EURUSD finding resistance at the 50-day moving average at 1.1180. Failure to break above this level is likely to add to the downward pressure.
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