EUR/USD Price Analysis: Loses momentum below the mid-1.0500s, further downside looks favorable

The EUR/USD pair loses traction near 1.0545 during the early European session on Thursday. The major pair faces some sell-off on the firmer US Dollar (USD) and the downbeat Eurozone economic data. Furthermore, recent tensions in the Middle East have also prompted worries about the region's dwindling growth prospects. Market players await the European Central Bank (ECB) interest rate decision on Thursday, which is expected to hold the rate unchanged at its October meeting.

Technically, the EUR/USD pair's downward bias remains intact as the major pair holds below the key 100-hour Exponential Moving Average (EMA) on the four-hour chart. Additionally, the Relative Strength Index (RSI) is located in bearish territory under 50, suggesting the path of least resistance is to the downside.

The immediate upside barrier to watch is near the 100-EMA at 1.0582. The key resistance level is seen at the 1.0600-1.0606 region, representing a high of October 25 and a psychological round mark. A decisive break above the latter will see a rally to the upper boundary of Bollinger Band at 1.0685, en route to a high of September 20 at 1.0735.

On the flip side, the initial support level for EUR/USD is located at 1.0522. The mentioned level is the confluence of a lower limit of the Bollinger Band and a low of October 18. Further south, a round figure at 1.0500 will be the next downside stop. A breach of the latter will see a drop to 1.0450 (a low of October 4).

EUR/USD four-hour chart