EUR/USD Price Analysis: Bulls take a breather after last week’s sharp rally

EUR/USD was seen trading near the 1.0830 area after the European session, posting mild gains on Monday.
Following a strong rally of over 4% last week, the pair enters a consolidation phase, potentially stabilizing above the 200-day SMA near 1.0780.
Technical indicators remain in positive territory, though the RSI is slightly declining from overbought conditions, signaling a possible slowdown in momentum.

Patricio Martín FXStreet

The EUR/USD pair extended its bullish momentum on Monday, trading near the 1.0830 zone after the European session. Despite the mild gains, the pair appears to be entering a consolidation phase after last week’s sharp surge, during which it added more than 4%. The recent slowdown could indicate that bulls are reassessing their positions, with technical indicators suggesting a potential cooling-off period.

The Relative Strength Index (RSI) remains in overbought territory but has started to decline slightly, hinting at fading upside pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) continues to print rising green bars, reflecting sustained buying interest, though at a moderating pace. Given this setup, further gains may be capped in the short term unless fresh catalysts emerge.

On the support side, the key level to watch is the 200-day Simple Moving Average (SMA) at 1.0780, which may act as a floor for price action. A decisive drop below this level could see the pair correcting toward 1.0750. On the upside, immediate resistance is seen around the 1.0850 zone, with stronger hurdles near 1.0900.

EUR/USD daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD holds steady near 1.1650 ahead of US data

EUR/USD stabilizes near 1.1650 on Friday after facing a rejection once again near seven-week highs. The pair, however, continues to draw support from persistent US Dollar weakness, despite a cautious market mood. Traders now await the US September PCE inflation and UoM Consumer Sentiment data.

GBP/USD clings to gains in 1.3350 region, eyes on US data

GBP/USD sticks to a positive bias near 1.3350 in the second half of the day on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation and sentiment data due later in the day. In the meantime, broad-based US Dollar weakness helps the pair stay afloat.

Gold remains below $4,250 as traders await key US data

Gold gains some positive traction on Friday and trades in the upper half of its weekly range. Dovish Fed expectations continue to undermine the USD and lend support to the commodity. Bulls, however, might opt to wait for the US PCE Price Index before placing aggressive bets.