EUR/USD Price Analysis: Inches lower to 1.0840 followed by the monthly low
|- EUR/USD loses ground toward the monthly low at 1.0813.
- Technical analysis suggests a conformation of the bearish sentiment.
- The region around the 23.6% Fibonacci retracement and the 21-day EMA could act as the resistance zone.
EUR/USD trades lower around 1.0840 during the Asian session on Monday, retracing its recent gains. The pair experiences downward pressure due to the risk-off mood, which could be attributed to the escalated tension in the Middle East after a drone attack on a United States (US) post in Jordon, killed three US personnel.
The significant level at 1.0850 may act as immediate resistance for the EUR/USD pair. A successful breakthrough above the latter could potentially propel the pair towards the 23.6% Fibonacci retracement level at 1.0889, followed by the 21-day Exponential Moving Average (EMA) at 1.0898, in conjunction with the psychological barrier at the 1.0900 level.
The 14-day Relative Strength Index (RSI) for the EUR/USD pair lies below the 50 mark, indicating a bearish momentum in the market. Additionally, the Moving Average Convergence Divergence (MACD), a lagging indicator, signals a potential confirmation of a downward trend with the MACD line positioning below the centerline and the signal line.
In the previous week, the EUR/USD pair reached its monthly low at 1.0813. A decisive break below this monthly low could prompt bearish sentiment, potentially driving the pair toward the psychological support level at 1.0800. If the pair extends its decline below the psychological level, it may face pressure to navigate toward the support level at 1.0750.
EUR/USD: Daily Chart
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