EUR/USD Price Analysis: Euro drifts near 1.1100 as bearish momentum builds

EUR/USD trades around the 1.1100 zone after a sharp decline in Monday’s session.
Short-term indicators confirm bearish sentiment despite conflicting long-term signals.
Key support levels hold below, while resistance clusters just above the current range.

Patricio Martín FXStreet

The EUR/USD pair traded near the 1.1100 zone on Monday, reflecting a sharp drop after the European session as sellers gained control. The pair remains within the middle of its daily range, suggesting that while bearish pressure is dominant, the market lacks a clear breakout signal. The technical landscape is mixed, with short-term signals aligning more closely with the downside, while longer-term indicators offer a more supportive backdrop.

From a technical standpoint, the pair is flashing a bearish overall signal. The Relative Strength Index sits in the 40s, reflecting neutral conditions without immediate oversold pressure. The Moving Average Convergence Divergence, however, prints a firm sell signal, confirming the recent downside momentum. The Awesome Oscillator hovers around zero, indicating neutral momentum, while the Ultimate Oscillator also remains in the 30s, reinforcing the cautious tone.

Short-term trend indicators lean heavily bearish. The 10-period Exponential and Simple Moving Averages both sit near the current price and slope downward, reinforcing immediate selling pressure. In contrast, the longer-term 100-day and 200-day Simple Moving Averages remain well below the current zone and continue to slope upward, suggesting that broader structural support remains in place despite the recent pullback.

Support levels are identified at 1.1082, 1.1073, and 1.0909. Resistance is found at 1.1192, 1.1202, and 1.1225. A sustained move below the immediate support zone could accelerate the decline, while a recovery above resistance would be needed to challenge the prevailing bearish outlook.

Daily Chart

Author

Patricio Martín

FXStreet

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

GBP/USD extends recovery, trades above 1.3200

GBP/USD holds on to modest gains above 1.3200 on Friday, building on gains seen in the previous day. Still, Cable struggles to build on its recovery as cautious market sentiment keeps investors focused on the US-Iran conflict and ongoing volatility in global technology stocks.

EUR/USD pops to daily highs near 1.1420

EUR/USD extends Thursday's recovery and climbs past the 1.1400 yardstick at the end of the week. The pair’s recovery comes as the US Dollar remains on the back foot, while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold advances to two-day highs, targets $4,100

Gold trades in a tight range above $4,000 per troy ounce on Friday, adding to the recent recovery. The precious metal, however, finds it difficult to attract fresh buyers as expectations for a hawkish Fed continue to strengthen.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

The Mag 7 trade is ending – The AI cash-flow divorce is just beginning

The AI boom is not weakening. The market is simply becoming less willing to reward companies for writing ever-larger infrastructure cheques without a clearer cash-return timetable. Microsoft, Amazon, Alphabet and Meta are becoming the financing arm of the AI cycle, while chips, memory, networking and power infrastructure increasingly look like the early cash beneficiaries.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.