EUR/USD Risk towards downside remains in tact

EUR/USD has turned to bearish mode and the uptrend for now seems to be limited.

Since March 27the when the pair marked a five-months high at 1.0905, bears had occupied the field and currently are aiming at the 61.8% Fibonacci level at 1.0555, well supported by the breaking to downwards of the 50-day moving average last week.

1.0500 is a crucial level, due to the fact that it has been tested several times last month and in case of dropping below it, we will witness further weakness around January’s low at 1.0340. 

The technical indicators on the daily graphic are displaying extreme overbought conditions. RSI is currently being at 38 and has lost directional strength. Stochastic is located at just 4 level and is not showing any vital signs.

The bearish case might be compromised only above the resistance at the 38.2% Fibonacci level at 1.0685.

On the whole, the short-term sentiment remains bearish.