EUR/USD Technical Outlook

EUR/USD dropped below the 100-period SMA on the four-hour chart and the Relative Strength Index (RSI) indicator on the same chart fell below 50, pointing to a bearish shift in the near-term technical outlook. The pair is currently trading slightly below the 1.0170 resistance, where the Fibonacci 38.2% retracement of the latest downtrend is located. If that level stays intact, additional losses toward 1.0120 (50-period SMA), 1.0100 psychological level, Fibonacci 23.6% retracement) could be witnessed. A daily close below the latter could open the door for an extended slide toward parity.

Above 1.0170, 1.0200 (psychological level, 100-period SMA) forms the next resistance before 1.0220 (Fibonacci 50% retracement, 100-period SMA) and 1.0270 (Fibonacci 61.8% retracement). 

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