EURUSD is looking to close higher for a second day but was struggling to hold above the 1.07 handle, dipping below it several times throughout the day. Momentum indicators have started trending upwards after falling to oversold territory but the upside momentum is not strong enough to push for a rise above 50. In fact, in the hourly charts, the stochastics have reversed back downwards, suggesting ongoing bearish bias in the near term.
The longer-term picture is also looking bearish as prices have drifter further below the 200-day moving average, widening the gap between the negatively aligned Tenkan-sen and Kijun-sen lines. The key psychological level of 1.06 is the next support level for EURUSD. A break below this level would pave the way towards the 2015 low of 1.0462 set back in March.
On the upside, prices would need to target 1.08 to weaken the bearish bias.
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