- EURUSD found support around 1.0500 after opening the week down 1%.
- Buyers should focus on recovering the 20-day SMA.
- The are still no signs of a reversal and indicators remain deep in the red.
EURUSD started the week down less than 1% and decided to drop below the 1.0500 psychological level but managed to stabilize near that level on Tuesday.
Despite this delay, the main view is still bearish as the pair remains below the 20-day simple moving average, which continues to act as a strong resistance. Indicators such as the Relative Strength Index (RSI), currently at 38, are still falling, suggesting that further losses are possible before reaching the sell zone. Similarly, the Moving Average Convergence Divergence (MACD) histogram is showing a bearish crossover while holding the green light but no breakout.
In the absence of a significant upside catalyst, the pair is still vulnerable to further losses; traders are closely monitoring the support levels between 1.0450 and 1.0430 for the possibility of a sustained or sustained loss towards 1.0400.
EUR/USD chart
