EUR/USD Price Analysis: Holds below 1.0800 ahead of German, Eurozone Services PMI data

• EUR/USD attracts some sellers around 1.0780 on the firmer USD.
• The pair keeps the bearish outlook unchanged below the key EMA; RSI indicator remains below the 50 midlines. 
• The immediate resistance level will emerge at 1.0840; the initial support level for EUR/USD is located at 1.0752.

The EUR/USD pair remains on the defensive during the early European session on Monday. The hawkish remarks from Federal Reserve (Fed) Chairman Jerome Powell provide some support to the US Dollar (USD) and exert some selling pressure on the EUR/USD pair. Investors await the Services PMI data from Germany and the Eurozone for fresh catalysts. At press time, the major pair is trading at 1.0780, losing 0.11% on the day.

Fed Chairman Jerome Powell said on Sunday that a rate cut in March is too early, and he doesn’t believe the central bank will have the confidence by then that inflation will return to a 2% target sustainably. The US Central Bank emphasized that it wants more confidence before taking the very important step of beginning rate cuts.

Technically, the bearish outlook of EUR/USD remains intact as the major pair is below the key 100-period Exponential Moving Averages (EMA) with a downward slope on the four-hour chart. The tower momentum is supported by the Relative Strength Index (RSI), which stands below the 50 midlines, suggesting that the path of least resistance level is to the downside.

On the bright side, the immediate resistance level for the major pair will emerge near the 50-period EMA at 1.0840. The next upside barrier is seen near the 100-period EMA at 1.0865. A decisive break above the latter will pave the way to the key hurdle at 1.0900, representing the confluence of the upper boundary of the Bollinger Band and a psychological mark. The additional upside filter to watch is a high of January 15 at 1.0967, and finally at the 1.1000 psychological round figure.

On the flip side, the first support level for EUR/USD is located near the lower limit of the Bollinger Band at 1.0752. A breach of this level will expose a low of December 8 at 1.0723, en route to a low of November 9 at 1.0660.