Trading Insights
analysis · · 1 min read

EUR/USD slides under 1.1394 EMA20 as downtrend extends

EUR/USD continues its week-long descent below EMA20 at 1.13941 with 4H and daily trends pointed lower; rallies into 1.13941 stay sells while 1.14386 caps.

Hafizah Rina, Senior Trading Analyst
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Trading analyst covering macro, equities, and digital assets. Focused on systematic risk frameworks and disciplined entries.

EUR/USD slides under 1.1394 EMA20 as downtrend extends
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Key takeaways

  • Six prior resistance levels broken in a week — the trend is the catalyst.
  • Price trades below EMA20, EMA50 and EMA200 with 4H and daily trends aligned lower.
  • 1.14386 is hard invalidation; below it sellers retain control toward 1.13241 support.

EUR/USD is grinding lower with the conviction of a trend that has chewed through six key levels in the past week and shows no sign of relenting.

The pair added a modest 0.02% on the session within a tight 1.13477 to 1.13711 intraday range, but the weekly picture tells the real story — a steady decline that has left 1.15856, 1.15541, 1.14799, 1.14386 and 1.13241 area resistance all behind it. No fresh macro catalyst is driving today's price action; the trend itself is the catalyst.

The technical setup is unambiguous for a trend-following desk. Price trades below EMA20 at 1.13941, EMA50 at 1.14550 and EMA200 at 1.15858 — a full bearish EMA stack with each average acting as rolling resistance. The 4H and daily trends are aligned lower, and while the 1H trend sits neutral, that merely flags consolidation rather than a reversal. RSI is drifting toward oversold territory without yet flashing a mean-reversion signal, and volatility remains calm, suggesting the grind lower continues rather than a sharp flush. The analytics signal corroborates the bearish read at moderate confidence. Support at 1.13241 is the next structural downside reference.

We lean short and sell into any rally that retraces toward EMA20 at 1.13941. A 4H close above 1.14386 invalidates the call and forces a full reassessment.

This content is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any financial instrument. Trading carries significant risk. Past performance is not indicative of future results.

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