- EUR/USD will slip on Friday by 0.22% to 1.0450, turning after testing the 100-day SMA.
- RSI drops rapidly to 55, signaling, weakening the stubborn rush near the middle point.
- The MacD histogram prints the lower green rods, which indicates the disappearance of the purchase pressure and the potential of further decline.
On Friday, the EUR/USD pair stood on Friday, falling by 0.44%to settle near 1.0450 after encountering the company’s resistance at a 100-day straight movable average (SMA) about 1.0540. This rejection means a critical turning point for the couple, which suggests that the stubborn rush begins to weaken after the last run. Without a decisive break above this key level, the bulls seem to lose traction on the market.
Technical indicators strengthen the weakening of perspectives. The relative force indicator (RSI) dropped violently to 55, approaching the neutral middle point 50, which can signal the shift of sentiment if it is violated. Meanwhile, the histogram of the movable medium convergence (MacD) shows flat green rods with a tilt down, reflecting the decreasing shopping pressure and the growing risk of a bear.
If EUR/USD does not recover 100-day SMA in the near future, a recent upward movement can be considered a fleeting correction, not a structural change. The couple can either withdraw or become a range between 100-day SMA resistance and 20-day SMA, which can act as initial support around the region 1.0415. A constant break below 20-day SMA will strengthen the bear even more.
