The EUR/USD pair has been trending lower, trading at 27-month lows as bearish momentum continues to gain ground. Trapped in a downward channel pattern, the pair experiences continuous selling pressure, and the 14-day RSI is close to reaching the oversold level of 30. According to technical indicators, EUR/USD is still below the nine- and 14-day EMAs. The support level at 1.0177 is at risk, and a break below could send the pair to the psychological level of 1.0000 or even 0.9730. On the upside, resistance lies at 1.0369, with further gains possible if the pair breaks above 1.0500. Until then, the bearish outlook dominates the market sentiment.
KEY LOOKOUTS
• A drop below this important support could push the bearish momentum, which may send EUR/USD towards the psychological level of 1.0000.
• The pair is still in a downtrend, with resistance at 1.0369 and upside potential only if it breaks above 1.0500.
• The 14-day RSI approaching 30 shows persistent selling pressure, and more downside movement may be expected.
• EUR/USD remains below the nine- and 14-day EMAs, reinforcing the bearish outlook and signaling weak short-term momentum.
The EUR/USD pair remains under strong bearish pressure, trading near a 27-month low as it continues its descent within a well-defined downward channel. Key technical indicators, such as the 14-day RSI approaching the oversold level of 30, suggest persistent selling momentum. The pair is struggling below the nine- and 14-day EMAs, which is further emphasizing the weak short-term outlook. The critical support at 1.0177 remains in focus, and a break below could send the pair towards the psychological 1.0000 mark or even lower. On the upside, resistance at 1.0369 needs to be breached for any signs of recovery, with a potential move towards 1.0500 if bullish momentum strengthens.
EUR/USD remains under bearish pressure and trades near a 27-month low within a descending channel. A break below 1.0177 can push it towards 1.0000. Resistance at 1.0369 must be broken for any recovery signs to appear.
• EUR/USD remains in a descending channel and trades near a 27-month low with persistent selling pressure.
• A break below this level can accelerate the losses, which may push the pair towards the psychological 1.0000 mark.
• The 14-day RSI is near 30, which is a strong bearish signal and could lead to further downward movement.
• The pair is trading below the nine- and 14-day EMAs, which strengthens weak short-term momentum.
• If the downtrend continues, EUR/USD may continue to fall to the lowest level since November 2022.
• A breakout above this level may lead to a short-term rally to 1.0500.
• Until a strong reversal signal emerges, the overall trend for EUR/USD remains in favor of sellers rather than buyers.
EUR/USD is still sliding downwards, with pressure near a 27-month low as the bearish forces remain dominant in the market. The pair remains in a descending channel, and technical indicators support the weak outlook. The 14-day RSI is approaching the oversold level of 30, indicating further selling pressure. Moreover, EUR/USD is traded below both the nine- and 14-day EMAs, which indicates a lack of short-term strength. An important support level at 1.0177 is in the spotlight, and if broken, the pair could drop further toward the psychological level of 1.0000 or even 0.9730, which was its lowest since November 2022.
EUR/USD Daily Price Chart
Sources: TradingView Prepared by ELLYANA
On the upside, the first resistance level to look out for is at 1.0369, where the nine-day EMA is located. A breakout above this level may give way to a short-term bounce that sends the pair towards the 1.0500 level, which marks the upper end of the descending channel. Bullish momentum might push the next target towards the three-month high of 1.0630. Still, the overall sentiment in the market is bearish, and the sellers continue to be in charge of the EUR/USD’s price action.
TECHNICAL ANALYSIS
The technical analysis of the EUR/USD pair has shown a very strong bearish trend. Here, the price is being restricted in a declining channel. It is near the oversold level of 30 as per the 14-day RSI. It means there is consistent selling pressure in the market. Further, the pair is trading below both nine and 14-day EMAs. The primary support is seen at 1.0177, and a break below that level could take the pair towards 1.0000 or even 0.9730. On the upside, a break above the resistance level of 1.0369 will be required for any recovery to take place, with further targets at 1.0500 and 1.0630. Until such time as a breakout takes place, the overall outlook remains bearish.
FORECAST
Although the prevailing bearish outlook exists, a recovery is possible if EUR/USD manages to break above key resistance levels. The first hurdle comes at 1.0369, the position of the nine-day EMA. A clear breakout above that level might propel the pair towards 1.0500, which falls within the boundaries of the declining channel. Stronger bullish momentum may take it all the way to the three-month high at 1.0630, though this requires the buying interest and market psychology to be well-sustained for a true turnaround.
The EUR/USD pair stays under heavy bearish pressure with key indicators looking for a potential move down. The price stays within a bearish channel. The 14-day RSI is also touching the over-sold region at 30 and still pointing downward, suggesting continuous selling momentum. If the price breaks below a crucial support area at 1.0177, then this may increase its losses further and push the prices toward the psychological mark of 1.0000. A further split would see EUR/USD test 0.9730, its lowest point since November 2022, to increase bearishness in the market.
