EUR/USD Price Analysis: Initial support lies at 1.0800 level

• EUR/USD gains momentum near 1.0820 at the start of the European session on Monday.
• The pair maintains bearish sentiment below a key EMA; The RSI momentum indicator is below the midline of 50.
• Initial support level is at 1.0800; the immediate resistance level will emerge at 1.0870.

The EUR/USD pair moves slightly higher below the 1.0850 area during the early hours of the European session on Monday. The weakening of the US Dollar (USD) offers some support to the pair. Investors are awaiting German retail sales data for February and annualized US gross domestic product (GDP) growth figures for the fourth quarter. The US economy is expected to remain stable at 3.2% in the fourth quarter. At the time of writing, the EUR/USD pair is trading at 1.0818, with a gain of 0.09% on the day.

According to the 4-hour chart, the bearish outlook for EUR/USD remains as the pair is below the 100-period exponential moving average (EMA). Furthermore, the bearish momentum is confirmed by the Relative Strength Index (RSI), which is below the midline of 50, indicating that the path of least resistance is downwards.

The initial support level is near the March 22 low and the round level of 1.0800. Further down, the next support level is near the lower boundary of the Bollinger Bands at 1.0762. Breaking that level will result in a drop to the February 16 low at 1.0732, followed by the confluence of the February low and the round 1.0700 level.

To the upside, the immediate resistance level will emerge at the 100 EMA at 1.0870. A decisive break above this level will expose a March 16 high at 1.0906. The key bullish barrier will emerge at the upper boundary of the Bollinger Bands and the March 21 high in the 1.0940-1.0945 region, en route to the March 8 high at 1.0981.

EUR/USD 4-hour chart