Technical Analysis – EURUSD dives further near 1.0600

• EURUSD challenges new 5-month low

• Penetrates symmetrical triangle to the downside

• MACD and RSI continues bearish momentum

EURUSD has been losing more than 2.5% since the pullback from the 1.0880 resistance level and is challenging a new five month low around the 1.0600 handle. The market has been experiencing a strong sell-off over the last five days, switching the short-term outlook to bearish.

Technically, the RSI is holding beneath the 30 level, while the MACD is standing beneath its trigger and zero lines, strengthening its negative momentum.

In case the market extends its selling interest then the first support to watch is the 1.0515 barrier, taken from the lows on November 1. Even lower, the low from October at 1.0450 could be a critical level for steeper decreases.

On the flip side, an upside recovery may meet the 1.0655 resistance level ahead of the 1.0695-1.0720 restrictive region. The penetrated ascending trend line may act as resistance level together with 1.0760 before meeting the 20-day SMA at 1.0780.

To conclude, EURUSD is heading south, breaking the symmetrical triangle and opening the way for more losses.