A notable development on the EURUSD daily chart last week is the break below the 55-day moving average (blue line on the chart). It is another bearish signal in a series of reversal signals since that high just above 1.10 earlier this month. Suddenly, the EURUSD picture doesn’t look so bullish and is now almost ready to turn fully bearish.

The rebound at 1.06 last week isn’t at a significant support area, which means this is unlikely to be the low. Further downside action can soon take EURUSD 1.05, which is the next important support zone. Further down, the 1.03 zone is a key technical support where the 100-day (red) and 200-day (orange) moving averages converge.

To the upside, moderate resistance is located at 1.0750 and 1.08. Firm resistance remains fortified at the 1.10 zone.