- EUR/USD started the week down more than 1%.
- The 1.0500 mark is gone and the pair has fallen further below the 20-day SMA.
- Indicators suggest there is room for further selling momentum.
EUR/USD started the week sharply lower, dropping more than 1% and falling decisively below the psychological mark of 1.0500. The move also pushed the price further below the 20-day simple moving average (SMA), which has been acting as a strong resistance recently.
Technical indicators are consistent with a bearish outlook and suggest further downside is possible. The Relative Strength Index (RSI) is on the downside at 37, inching towards oversold territory but indicating there is still room for selling pressure to build. Meanwhile, the MACD histogram is showing a low green bar, reinforcing the view that bearish momentum is increasing.
The break below 1.0500 and technical indicators suggest that the pair is poised for further losses unless a significant reversal trigger emerges. Traders will closely monitor the 1.0450 and 1.0430 levels for any signs of potential stabilization or a continuation towards 1.0400.
