EUR/USD is currently trading around 1.0820, marking a decline for three consecutive days. The pair has lost over 1% this week, though the recent bullish crossover of the 100-day and 200-day simple moving averages may provide support.
Momentum indicators reveal a bearish trend, with the Relative Strength Index (RSI) retreating and the Moving Average Convergence Divergence (MACD) showing a new downward signal. Despite these signals, the crossover around 1.0730 offers some structural support.
Key Support And Resistance Levels
Immediate support is anticipated at the 1.0780-1.0730 zone, while a break below this could lead to losses towards 1.0660. Resistance levels are seen at 1.0900 and 1.1000.
What we see now is a market grappling with downward pressure despite some underlying technical support. The short-term movement has been negative, with a noticeable drop over the past few days, but certain longer-term indicators suggest there is a base forming. With the RSI pulling back and the MACD flashing a fresh sell signal, traders who rely on momentum-based strategies will likely be favouring caution. However, price action is approaching an area where buyers have historically stepped in.
The crossover of the 100-day and 200-day moving averages often carries weight among technical traders, as it signals potential long-term strength. The area around 1.0730 has held before and, given its confluence with this recent crossover, that level could be an important reference point. If downward movement pauses there, it could encourage some short-covering or fresh buying.
Market Sentiment And Outlook
From a broader perspective, the support between 1.0780 and 1.0730 will be closely watched. If breaks occur beneath this, the next logical target sits near 1.0660, an area that previously acted as a floor in past trading sessions. Those positioned for more downside will likely monitor whether price action accelerates below these levels.
On the other hand, resistance at 1.0900 and 1.1000 marks territory that bulls would need to reclaim before shifting market sentiment. Given the recent pressure, any recovery attempts would likely face challenges at these levels as traders react to potential selling interest.
Market participants should consider how price reacts both near support levels and around key resistance zones, as these will shape near-term direction.
