- EUR/USD recovered losses near 1.0475 in early European trading on Monday.
- The negative sentiment on the pair remains stable below the 100-period EMA and the RSI indicator is in a bearish trend.
- Initial support is at 1.0400-1.0390; the first level is at 1.0545.
EUR/USD is trading in positive territory around 1.0475 in early European trading on Monday. Gains in majors were supported by a slide in the U.S. dollar after Donald Trump announced that he would nominate Scott Bessent to be U.S. Treasury Secretary.
However, EUR/USD keeps the bearish vibe on the 4-hour chart as the price remains capped under the key 100-period Exponential Moving Averages (EMA). The downward momentum is reinforced by the Relative Strength Index (RSI), which stands below the midline near 44.25, supporting the sellers in the near term.
The initial support level for the major pair emerges in the 1.0400-1.0390 zone, representing the psychological level and the lower limit of the Bollinger Band. A breach of this level could pave the way to 1.0331, the low of November 22. The next downside target to watch is 1.0290, the low of November 30, 2022.
On the upside, initial upward resistance is at 1.0545, the high of November 21. Key resistance is formed at 1.0621, the 100-time EMA.
EUR/USD 4-hour chart
