The EUR/USD pair comes under renewed selling pressure for a second consecutive session, sliding to a nearly four-week low around the 1.1670 area during Monday’s Asian trading hours. The pullback extends from the three-month peak posted just above 1.1800 on December 24, with bearish traders now waiting for a decisive break below the 100-day Simple Moving Average before positioning for deeper losses.
The downside move is supported by a firmer US Dollar, which continues to benefit from elevated geopolitical tensions and its safe-haven appeal.
The USD’s recovery from its lowest level since early October has weighed on the common currency, although expectations for a more dovish US Federal Reserve could limit further Dollar strength. At the same time, growing market confidence that the European Central Bank has reached the end of its rate-cutting cycle may offer some underlying support to the Euro, potentially slowing the pace of the decline.
Technical outlook keeps sellers cautious near key support
From a technical perspective, momentum indicators on the daily chart lean bearish. The MACD line has crossed below its signal line and moved into negative territory, with the histogram widening to the downside, pointing to building selling pressure. The Relative Strength Index hovers around 44, below the neutral 50 level, highlighting a loss of bullish momentum.
Immediate support is seen at the 100-day SMA, currently located near 1.1666. As long as this level holds, downside pressure may remain contained. However, a daily close below the rising 100-day SMA would shift the broader bias back in favor of sellers and open the door for a deeper corrective move.
Until such a break materializes, the pair may attempt to stabilize above this key technical level, though a recovery in the RSI above 50 would be needed to signal a meaningful return of bullish momentum.
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