As prices continue to trace back their steps away from the 20-day simple moving average (SMA) and the most recent high of 1.0280, EURUSD remains under pressure and there is still a risk to the downside.
The short-term technical indicators are still pointing downward. The RSI is falling below the neutral level of 50, while the MACD is rising above its trigger line in the negative region.
The parity level yet again is the next target on the downside after the price failed to fill below it on a daily basis. However, the price may meet the July 14 spike, which set a new 20-year low of 0.9950. Further losses could pave the way for a test of the downward sloping channel's return line around 0.9800, just ahead of the 0.9610 barrier, which was drawn from the September 2002 low.
At 1.0280, there will probably be resistance for upward moves. The descending trend line, which is situated close to the 40-day SMA at 1.0400, will be encountered if the price rises above this area, first towards 1.0345. Breaking this level might trigger a return to the 1.0635 high and shift the bias toward the bulls.
