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EUR/USD Price Analysis: Seller takes a toll on recent gains

  • EUR/USD drops to a low 1.0355 on Tuesday,  shedding part of its weekly gains.
  • RSI stands at 52 in positive territory, yet its rapid decline raises concern over near-term resilience.
  • MACD histogram features rising green bars, hinting at underlying buyer interest despite the downward slope.

The EUR/USD sits around 1.0380, indicating a  dip of 0.30% on Tuesday’s trade but managed to clear part of its daily losses. Despite occasional attempts at recovery, the pair has failed to generate sustained momentum on the upside, suggesting sellers remain firmly in control in the bigger picture.

Technically, the Relative Strength Index (RSI) is perched at 52 but declining swiftly, undermining confidence in an immediate rebound. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram continues to show rising green bars, a signal that some degree of bullish sentiment still lurks beneath the current price action. This contrast between a softening RSI and a firming MACD underscores the market’s indecision at present levels.

Looking forward, traders will keep an eye on whether EUR/USD can find a stable footing above the 1.0300 region or if further selling could push it back toward this month’s trough near 1.0240. On the flipside, any sustained push above 1.0400 would draw attention to the pair’s recent peak at 1.0435, potentially shifting short-term prospects back in favor of the bulls.

EUR/USD daily chart

Author

Patricio Martín

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

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