Selling pressure is still evident on EUR/USD on Monday, with the exchange rate hovering just above 1.1570 in early American trading. The overall market sentiment seems to be leaning towards the bearish side, with many technical signals suggesting a likely downturn. The current flight to safety is increasingly driving the US Dollar higher, particularly against European currencies. That said, market participants are hanging on every twist and turn of the still-evolving situation.
Indeed, the negative near-term outlook for EUR/USD is playing out, with the pair diving decisively below all its moving averages. It appears this bearish trend will not be stopping anytime soon. This continuation of pressure is punctuated by the bearish 20 Simple Moving Average (SMA) that is currently at 1.1600. A bearish 100 SMA has crossed below a static 200 SMA. Both of these indicators are currently just above the 1.1700 level. These technical advances have led many to believe that it’s a sellers’ market, clearly.
Furthermore, the daily chart shows a subtly positive 100 SMA, which is offering the resistance in the 1.1630 region. This llama resistance level is a serious challenge for upward movements. The overall downward strength combined with this downward pressure of the 20 SMA above it reinforces these barriers. As EUR/USD continues to build downward momentum, forecasters expect the pair to extend losses beneath key support at 1.1540.
Resistance levels for EUR/USD loom large at 1.1620, 1.1650, and 1.1700. Last week’s 1.1542 low is the pair’s first line of support. If EUR/USD were to clear these areas, this might indicate a more aggressive broader downtrend.
There is notable resistance at 1.1600, 1.1630, 1.1670. The struggle between these support and resistance levels reflects the ongoing volatility in the currency pair as traders react to broader market trends.
On Monday, this currency pair edged lower but remained inside the range of Friday. This indicates that there still is selling pressure, however the pair has not had a clear breakout above or below this trendline. As a result, international investors have crowded into the relative safety of the US Dollar. This trend is indicative of a risk-averse atmosphere that persists both in Washington and in the current marketplace.