EUR/USD price analysis: Early week downturn extends bearish theme
- The pair kicks off the week with a 0.35% slide to 1.0400, halting its brief two-day winning streak.
- RSI drops to 38 in negative territory, while MACD shows flat red bars, pointing to persistent downside pressure.
- The 20-day SMA continues to cap any attempted rebounds, keeping the pair under bearish control.
EUR/USD opened the new trading week on a softer note, sliding by 0.35% to hover near 1.0400. Although the pair had posted modest gains in the previous sessions, sellers re-emerged to push prices lower, reaffirming the dominance of a broader downtrend. The 20-day Simple Moving Average (SMA), situated around 1.0500, still serves as an immediate ceiling that the bulls have been unable to surmount.
Meanwhile, the Relative Strength Index (RSI) has dipped further into negative ground at 38, suggesting intensified selling pressure, and the Moving Average Convergence Divergence (MACD) histogram remains flat and in red territory, indicating that any recovery attempts lack strong momentum. Unless the pair can muster a sustained push above the 20-day SMA, the broader technical outlook is likely to stay tilted to the downside.
Looking ahead, market participants will watch for any fundamental catalysts or risk events that might spark renewed buying interest. However, with momentum gauges pointing south, EUR/USD appears vulnerable to further weakness unless bulls manage to overcome nearby resistance levels.
EUR/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
