- EUR/USD fell more than 1% to open the week.
- The 1.0500 level has been lost and the pair fell further below the 20-day SMA.
- Indicators suggest that the selling momentum may have more room to continue.
The EUR/USD pair started the week with a sharp decline, losing more than 1% and decisively breaking below the psychological level of 1.0500. This move also pushed the pair further below the 20-day Simple Moving Average (SMA), which has recently acted as strong resistance.
Technical indicators align with the bearish outlook, suggesting that further declines could be in play. The Relative Strength Index (RSI) is pointing down at 37, approaching oversold territory but still indicating room for more selling pressure. Meanwhile, the MACD histogram is printing lower green bars, reinforcing the view that bearish momentum is strengthening.
The break below 1.0500 and technical indicators suggest that the pair is primed for further losses unless a significant reversal catalyst emerges. Traders will be closely watching the 1.0450 and 1.0430 levels for signs of possible stabilization or a continuation towards 1.0400.
EUR/USD Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
