- EUR/USD is reversing lower from the 5-day MA hurdle.
- The pair remains on track to test the recent low of 1.0989.
EUR/USD is currently trading at 1.1017, representing marginal losses on the day, having faced rejection at the descending (bearish) 5-day moving average at 1.1025 an hour ago.
The pair now risks falling below the Nov. 25 low of 1.1004 and test 1.0989, as suggested by the bearish lower high of 1.1097 established on Nov. 21.
Technical indicators are also indicating the path of least resistance is to the downside. The 14-day relative strength index is reporting bearish conditions with a below-50 print and the daily MACD histogram is again printing deeper bars below the zero line, a sign of strengthening bearish momentum.
The outlook would turn bullish if and when the pair rises above 1.1097, invalidating the lower highs setup.
The bearish case looks stronger if we take into account the previous week’s bearish hammer and the weekly MACD’s shallow bars above the zero line.
Daily chart
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Trend: Bearish
Technical levels
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