• The 20-EMA is acting as a major barricade for the counter.
• A sideways move after a downside move generally attracts more weakness further.
• The RSI (14) is on the verge of shifting into the bearish range of 20.00-40.00.

The EUR/USD pair has slipped lower after struggling to sustain above the round level resistance of 1.0540. The asset witnessed a sheer downside after sensing rejection from its crucial barricade at 1.0643 on Thursday. At the press time, the major has tumbled below Wednesday’s low at 1.0516 and is expected to extend losses in the European session.

On the hourly scale, the shared currency bulls have faced rejection from the 20-period Exponential Moving Average (EMA), which is trading at 1.0544. The asset has turned sideways after a vertical downside in a tad wider range of 1.0471-1.0641. The 200-EMA at 1.0588 is scaling lower, which adds to the downside filters.

Momentum oscillators, Relative Strength Index (RSI) (14) is on the verge of slipping below 40.00. In case it happens, greenback bulls may get strengthened and will drag the asset swiftly.

Should the asset drops below Monday’s low at 1.0490, a bearish setup will be triggered that will drag the asset towards the 9 January 2017 low and 19 December 2016 low at 1.0454 and 1.0352 respectively.

On the flip side, greenback bulls may lose their grip if the asset oversteps Thursday’s high at 1.0642. This will drive the asset towards the round level resistance at 1.0700, followed by April 22 low at 1.0767.

EUR/USD hourly chart