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EUR/USD Price Analysis: Pair retreats to 1.0525, losing key 20-day SMA support

  • EUR/USD declines by 0.33% on Tuesday, settling at 1.0525 after falling below the 20-day SMA.
  • RSI drops sharply to 40, remaining in the negative area, signaling weakening momentum.
  • MACD histogram prints decreasing green bars, highlighting fading bullish traction.

The EUR/USD pair extended its losses on Tuesday, retreating to 1.0525 and slipping slightly below the 20-day Simple Moving Average (SMA). This development undermines the pair's short-term constructive outlook, raising concerns about further downside risks if the 20-day SMA is definitively breached.

Technical indicators point to a deteriorating momentum. The Relative Strength Index (RSI) has declined sharply to 40, signaling increased selling pressure and remaining firmly in the negative territory. Similarly, the Moving Average Convergence Divergence (MACD) histogram shows decreasing green bars, indicating fading bullish traction and reinforcing a bearish bias.

On the downside, the loss of the 20-day SMA around 1.0550 exposes the pair to further declines, with the next support levels at 1.0500 and 1.0480. For any recovery, EUR/USD must first regain the 20-day SMA and then break above the 1.0600 resistance level to revive the bullish case and shift momentum back in favor of the bulls.

EUR/USD daily chart

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Patricio Martín

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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