Yesterday the EUR/USD was relatively unchanged due to the Labor Day holiday in the United States. Currently, the pair is trading at 1.1817 while the investors cautiously wait for the Euro Zone GDP Data numbers later in the day. The Italian retail sales data released earlier in the session showed a decline of -2.2% compared to a forecast of 1.1%. On the technical grounds, the pair seems to have entered a bearish zone with immediate support at 1.1800 while stronger supports are at 1.1745 and 1.1720 levels. The intraday resistance is at 1.1847 another resistance is present at 1.1872 level.
The RSI is at 56 and currently showing a flat picture which may well be taken as a sign of an ending upwards trend. The MACD is also not indicating any sign of a crossover or a divergence.
The Moving averages are giving mixed signals, the SMA-21 indicates a resistance level at 1.1843 while the SMA-50 shows a support level way below at 1.1669. Currently, the pair is good to sell on rallies. A decent selling point would be at 1.1845 with a target of 1.1775. A tight stoploss for this position would be just above the 1.1890 level.
Bears would need an intraday closing below 1.18000 to take the pair further lower. On the upside, only closing above 1.1920 would provide some control back to the bulls.