EUR/USD Price Analysis: Bearish spinning top, overbought RSI direct Euro sellers toward 1.0900

EUR/USD extends previous day’s pullback from five-week high, stays pressured of late.
Bearish candlestick formation, overbought RSI suggests further downside toward multi-day-old horizontal support.
Bullish MACD signals, 50-DMA can challenge Euro bears past 1.0900.
Euro buyers need validation from 1.0960 to retake control.

Anil Panchal FXStreet

EUR/USD takes offers to reverse the late Friday’s corrective bounce, as well as the week-start inaction, as it justifies the previous day’s bearish candlestick formation amid overbought RSI conditions on early Monday in Europe. That said, the Euro pair renews its intraday low near 1.0930 while extending earlier pullback from the highest levels in five weeks.

It’s worth noting that the Juneteenth holiday in the US also joins the bearish spinning top candlestick on the daily chart of the EUR/USD pair and the overbought RSI (14) line to please the Euro bears of late.

With this, the quote appears all set to decline towards a nine-week-old horizontal support zone surrounding 1.0910-900.

However, the bullish MACD signals and the 50-DMA support of around 1.0880 can challenge the EUR/USD bears afterward.

In a case where the Euro pair drops below 1.0880, the odds of witnessing a slump towards the 50% and 61.8% Fibonacci retracement of its March-April run-up, respectively near 1.0800 and 1.0735, can’t be ruled out.

On the flip side, a daily closing beyond the 23.6% Fibonacci retracement of near 1.0960 and the previous day’s peak of around 1.0970 restrict the short-term EUR/USD upside.

Following that, multiple tops marked around 1.1000 can challenge the Euro bulls before directing them to the March 2022 high close to 1. 1185.

EUR/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.0936
Today Daily Change	-0.0004
Today Daily Change %	-0.04%
Today daily open	1.094

Trends
Daily SMA20	1.0764
Daily SMA50	1.0879
Daily SMA100	1.0807
Daily SMA200	1.0542

Levels
Previous Daily High	1.0971
Previous Daily Low	1.0918
Previous Weekly High	1.0971
Previous Weekly Low	1.0733
Previous Monthly High	1.1092
Previous Monthly Low	1.0635
Daily Fibonacci 38.2%	1.0938
Daily Fibonacci 61.8%	1.095
Daily Pivot Point S1	1.0915
Daily Pivot Point S2	1.089
Daily Pivot Point S3	1.0862
Daily Pivot Point R1	1.0968
Daily Pivot Point R2	1.0996
Daily Pivot Point R3	1.1021

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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