EURUSD unlocks fresh 28-month lows; could lose more

EURUSD breached the floor around 1.0925 and stretched the four-month old downward pattern to a fresh 28-month low of 1.0904 on Friday.

According to the technical indicators, the pair remains exposed to downside risks in the short-term given the negative slope in the RSI and the falling Stochastics, which have yet to confirm oversold conditions.

The focus is now on the 1.0830, a key support and resistance area during 2017. Should the price overcome that barrier, the sell-off could stretch towards the 1.0700 psychological mark. Moving down, the bears could take a rest within the 1.0560-1.0500 zone before a tougher battle starts around the 2016 multi-year trough of 1.0350.

On the upside, all eyes are on the descending line drawn from the 1.1411 peak, a break of which could put the market back on the bull run and bring the 1.1100 mark in the spotlight. Before that, however, the pair would need to overcome the 1.0966 handle and then the congested area around 1.1025.

In the medium-term picture, the market continues to print lower highs and lower lows, with the falling 50-day SMA reducing the odds for an outlook reversal.

Summarizing, EURUSD is expected to maintain a negative mood both in the short- and medium-term unless it manages to lift the downtrend line.