EUR/USD Price Analysis: Pair pulls back after strong rally, signaling a technical correction

EUR/USD slips to 1.0475 on Monday, pausing after last week's sharp rally.
The pullback appears to be a technical correction, with key support levels in focus.

Patricio Martín FXStreet

EUR/USD took a step back on Monday, edging down 0.15% to 1.0475 after last week's impressive rally of over 1.50%, which marked a four-day winning streak. The decline appears to be a natural breather rather than a structural shift, as technical indicators still favor the bullish trend. The pair remains comfortably above the 20-day Simple Moving Average (SMA), suggesting that dips might attract renewed buying interest.

Momentum indicators reflect a slight slowdown but do not signal an imminent reversal. The Relative Strength Index (RSI) has eased to 59 but stays in positive territory, indicating that the rally may not be over yet. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, suggesting consolidation rather than a strong bearish move.

For bulls to regain full control, EUR/USD needs to reclaim 1.0500 and establish itself above this psychological level. On the downside, immediate support lies at 1.0450, followed by 1.0420. A deeper correction could see the pair retesting the 20-day SMA near 1.0400, where buyers are likely to step in.

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.

AUD/USD eyes 0.7000 as China GDP surprise powers rally

The Australian Dollar registers two days of consecutive gains versus the US Dollar, trading at 0.6980, up more than 0.50% as risk appetite improved, while the Aussie was supported by strong data on China’s GDP and Retail Sales.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold tumbles below $4,150 amid elevated US Treasury yields

Gold price falls to around $4,135 during the early Asian session on Tuesday. The precious metal extends its downside as US bond yields stayed elevated despite falling energy prices. Traders continue to assess the outlook for US interest rates ahead of next week’s Federal Reserve policy meeting.

Ethereum holds $2,400 as BitMine continues buying

Ethereum (ETH) trades near $2,400 on Monday, reversing a slight recovery from the early Asian session despite digital asset treasury firm BitMine Immersion (BMNR) scooping additional ETH tokens. The Las Vegas-based firm purchased 12,535 ETH last week, extending a weekly buying streak that stretches back to June 30, 2025.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold is struggling to capitalize on a weaker US Dollar, after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.