EUR/USD Weakens Slightly, Bearish Momentum Lurking
The EUR/USD currency pair weakened slightly in Asian trading on Monday, trading around 1.1660 after a modest rise in the previous session. The 14-day Relative Strength Index (RSI) indicator is at 42.69, below the 50-day midline, indicating that selling pressure remains dominant, although it has not yet reached oversold levels. This condition indicates that the price will likely consolidate before determining its next direction.
Daily technical analysis shows the price is below the 9-day and 50-day EMAs, with the 50-day EMA flattening, thus limiting the rebound. Although the medium-term uptrend has not completely broken, weakening momentum signals the potential for a correction or further consolidation before the next significant move.
On the support side, EUR/USD has the potential to move towards a six-week low of 1.1589, with further declines opening the door to 1.1468. Meanwhile, the nearest resistance is around 1.1679–1.1681, where a daily close above this level could revive upward momentum and target the three-month highs of 1.1808 to 1.1918. (az)
Source: Newsmaker.id