EUR/USD -0.33% is extending downside for the 2nd consecutive session after upside was capped below strong trendline resistance.
The major has breached 5-DMA support at 1.2033. Bias lower.
Technical indicators on daily charts are turning bearish . RSI has shown a rollover from overbought levels and is biased lower, while Stochs are on the verge of a rollover.
We find strong support for the major at 1H 200 SMA at 1.1983, break below to see weakness accentuate.
Scope then for test of 20-DMA at 1.1898, breach there will see further downside.
On the upside, breakout above 1.2090 will negate bearish bias.
Support levels - 1.1983 (1h 200 SMA ), 1.19, 1.1897 (20-DMA)
Resistance levels - 1.2031 (5-DMA), 1.2085 ( trendline ), 1.2092 (Sept 8 high)
Good to go short on break below 1.1983, SL: 1.2040, TP: 1.19/ 1.1830
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