- EURUSD faced rejection near one-month-old ascending trend-channel resistance.
- A subsequent fall below mid-1.1800s should pave the way for additional weakness.
- Mixed technical indicators on 4-hourly/daily charts warrant some caution for bears.
EURUSD stalled its bullish momentum near a resistance marked by the top boundary of a near one-month-old ascending channel. The pair’s inability to find acceptance above the key 1.2000 psychological mark and a subsequent slide below the 1.1900 handle could be seen as initial signs of possible bullish exhaustion.
Some follow-through selling below mid-1.1800s will suggest that the recent strong rally might have already run out of the steam and pave the way for further weakness. The negative outlook is reinforced by the fact that oscillators on the 4-hourly chart have just started drifting into the bearish territory.
However, technical indicators on the daily chart – though have corrected from higher levels – maintained their bullish bias. This, in turn, warrants some caution for bearish traders. That said, the pair seems vulnerable to extend the corrective slide and aim to challenge the channel support, around the 1.1780 region.
On the flip side, the 1.1900 mark now seems to act as an immediate resistance, above which the pair could climb further to the 1.1950 horizontal zone before darting back towards the 1.2000 mark. Hence, fresh bearish bets should be accompanied by appropriate stop-loss near the mentioned levels.