EUR/USD back in downward trend

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Euro is moving in a nice downward trend and it seems that it has taken the due retracement and seems all set to resume the downward trend. The traders will be interested in selling EUR/USD on rise to short retracement levels.

The first such level can be seen around 1.2600 level and once traders able to sell EUR/USD around that level, they will be looking to target profits around 1.2300 level. In case the retracement by EUR/USD is extended above 1.2600 level, it will look to extend the retracement towards 1.2920 level and mostly long term traders will be interested in selling EUR/USD around that level.

Looking at the moving averages used in the daily charts, it can be seen that EUR/USD has slipped below all the three moving averages used in the daily charts. The short term and medium term traders will be looking to sell around 1.2600 level where the medium term moving average is at the moment.

In case the EUR/USD breaks above the medium term moving average, it will next look to touch long term moving average which is around 1.2920 level. RSI is just below 39 in daily charts and seems to have opened up enough space for EUR/USD to take an extended dip. 

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