EURUSD likely to resume downtrend. Watch key levels and RSI

7 mag

EURUSD spiked late last week above the 55 and 200 daily Moving Averages and close to the 0.786 retracement at 1.0824 before retracing back below the 0.618 retracement at 1.0776. In three tries, EURUSD failed to close above the 0.618 retracement and RSI failed to close back above 60 thresholds. All Moving Averages are declining, putting a drag on EURUSD. The cross is likely to resume the downtrend.

If EURUSD is sliding below the 0.382 retracement at 1.0732 and RSI is closing below its lower rising trendline, EURUSD is likely to be hit with a sell-off down to the 0.786 retracement at 1.0646.

To establish a bullish trend, a daily close above 1.0885 is required. However, a close above last week's peak at 1.0813 AND an RSI close above 60 threshold will be a strong indication that scenario is to play out.