EUR\/USD extended losses on Tuesday, slipping under the 100-day SMA at 1.1555 and shifting focus to Monday\u2019s low of 1.1523. The pair was trading at 1.1548, holding just above the 50-day SMA at 1.1530 after a rebound attempt stalled at the 100-day average.<\/p>\n
The RSI was pointing lower, keeping the technical bias tilted to the downside while the 50-day SMA acted as near-term support. A break below that level would bring 1.1500 into view; if that gives way, attention turns to 1.1450 and the 28 July swing low at 1.1353, with 1.1324 also referenced in the update. To stabilise, EUR\/USD would need to retake 1.1555, after which 1.1600 comes into focus, followed by the 200-day SMA at 1.1632 and then 1.1650.<\/p>\n
With the EUR\/USD recently breaking below its 100-day Simple Moving Average at 1.1555, we believe derivative traders should prepare for a continued downward slide. The immediate target for short-term sellers is Monday\u2019s low of 1.1523, which sits just above the crucial 50-day SMA support at 1.1530. We recommend utilizing put options or short futures contracts to capitalize on this growing bearish momentum.<\/p>\n
Historically, similar technical breaks below the 100-day SMA accompanied by a falling RSI lead to an extended sell-off more than 60% of the time. If the pair dives below the 50-day SMA, we expect a rapid test of the 1.1500 level, which could quickly expose the July low near 1.1353. Derivative traders should watch for a surge in bearish volume to confirm this breakdown.<\/p>\n
This negative outlook is supported by recent futures market data, which shows speculative net-short contracts on the Euro rising steadily over the past month. We advise maintaining a bearish bias unless the Euro can stage a strong reversal to reclaim 1.1555 and target the 200-day SMA at 1.1632. Traders can manage risk by placing stop-loss orders just above the 1.1600 resistance zone.<\/p>\n\n\n\n