EUR/USD is currently trading around the 1.0830 level, showing a notable daily decline. The pair continues its correction, with sellers aiming to test the 1.0800 area.
Following the European session, the pair fell further as bearish pressure increased. This downturn follows signs of an overextended bullish run, pushing sellers towards key downside levels.
Technical Indicators And Market Outlook
The technical indicators suggest growing downside momentum. The Relative Strength Index (RSI) is decreasing sharply while the Moving Average Convergence Divergence (MACD) displays diminishing green bars.
Immediate support lies at 1.0800, and a break below this might accelerate bearish activity towards 1.0765. Resistance is noted near 1.0885, with a stronger barrier at 1.0920. A potential bullish crossover at the 20 and 100-day SMAs around 1.0700 could favour buyers.
With the pair experiencing further losses, traders should be watching for a potential retest of the 1.0800 zone. If that level gives way, the next target at 1.0765 could quickly come into play, given the growing downside force signalled by technical indicators.
Looking at market conditions, the RSI moving lower suggests that sellers remain firmly in control for now. At the same time, the fading green bars on the MACD reinforce the idea that momentum has shifted away from buyers. These indicators complement the broader move, painting a picture of a market that is losing upward steam and facing pressure from those betting against it.
Key Support And Resistance Levels
Resistance, meanwhile, remains largely unchanged. The 1.0885 mark remains a key hurdle, and if buyers were to reclaim lost ground, 1.0920 would be another key level to monitor closely. However, with the potential for the 20-day and 100-day SMAs to cross around 1.0700, some support could emerge at slightly lower levels, particularly if the selling pressure eases.
With the pair now correcting after an extended rise, the coming sessions will be crucial in determining whether downside movement continues or if support levels manage to hold firm. Traders should remain aware of price reactions at critical support and resistance points, especially as the technical picture becomes more pronounced.
