FxNews—The EUR/USD pair trades bearish below the 50- and 100-period simple moving average. In today’s trading session, the European currency fell below the 23.6% Fibonacci retracement level, backed by the ascending trendline.
As of this writing, EUR/USD hovers around $1.052, stabilizing the recent losses and preparing for a new bearish run.
EURUSD Technical Analysis
The recent decline in the technical indicators was anticipated, as the Awesome Oscillator histogram is red, giving a sell signal. Meanwhile, the Stochastic Oscillator began a decline from 80, meaning the bear market was strengthening.
Overall, the technical indicators suggest the primary trend is bearish and should resume.
EURUSD Began a Bearish Trajectory From $1.60
Critical resistance rests at the 38.2% Fibonacci level ($1.066). The trend outlook remains bearish below this barrier. That said, if EUR/USD stays below $1.066, the downtrend is likely to target $1.043. Furthermore, if selling pressure drives prices below $1.043, the next bearish target could be the November low at $1.033.
Please note that the downtrend should be invalidated if prices exceed $1.066 or the 38.2% Fibonacci retracement level.