EURUSD neutral outlook but immediate bias is to downside
|EUR/USD has been declining for a third consecutive day after having rallied to a high of 1.0905 earlier this week. The uptrend from just below 1.0500 to 1.0900 paused and it could be that the pair is putting in a short-term top at this 1.0905 high.
The immediate bias is to the downside, as RSI is trending down. The sharp drop in EURUSD yesterday has increased the risk of a deeper down-move towards the next support which lies at 1.0700. This is a key psychological level as well as a Fibonacci level. It is the 50% retracement of the uptrend from 1.0493 to 1.095 (February 22 low to March 27 high) and any rebound from here is expected to face strong resistance at 1.0800 and at 1.0828 (February 2) high.
A drop below 1.0700 would shift the short-term bullish structure to a more bearish one. However, the medium-term outlook is neutral.
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