- EUR/USD continues to trend downward in response to US GDP statistics.
- Technical analysis suggests bearish sentiment for the month at 1.0821.
- Above 1.0850, the pair could find support approaching the 23.6% Fibonacci retracement and the resistance zone near the 21-day EMA.
The EUR/USD pair widened its decline for the second day in a row, gradually falling to around 1.0830 in Asian trading on Friday. The EUR/USD pair came under downward pressure following the release of United States (US) gross domestic product (GDP) data.
The 14-day Relative Strength Index (RSI) for EUR/USD is currently below the 50 milestone, suggesting bearish momentum in the market. Additionally, the Moving Average Convergence Divergence (MACD), a lagging indicator for the EUR/USD pair, shows potential confirmation of a downtrend. The MACD line is located below the center line and diverges below the signal line.
Earlier this week, EUR/USD tested 1.0821, double its monthly low. A solid break below the monthly lows could influence the bears and push them towards psychological support at 1.0800.
If the EUR/USD pair breaks below the psychological level, it could put pressure towards the support level at 1.0750.
On the upside, the major level at 1.0850 may provide some immediate resistance. If the latter can be broken out, the EUR/USD pair could approach the 23.6% Fibonacci retracement at the 1.0895 level, along with the psychological barrier at the 1.0900 level and the 21-day exponential moving average (EMA) at 1.0901. .
