- EUR/USD edges higher on Monday, trading near the 1.0500 level.
- The RSI ticks up to 43 but stays in bearish territory, indicating a weak recovery.
- The MACD histogram shows increasing green bars, though the pair struggles to gain enough momentum to surpass the 20-day SMA.
The EUR/USD pair saw a modest recovery on Monday, edging slightly above 1.0500 after rebounding from recent lows. Despite nearing the 20-day Simple Moving Average (SMA) around 1.0520, the pair once again failed to clear this key resistance, keeping the outlook cautious.
Technical indicators show tentative improvement but still favor a bearish bias. The Relative Strength Index (RSI) has risen to 43, signaling a slight increase in buying interest, though it remains in negative territory. Similarly, the MACD histogram displays growing green bars, hinting at stabilizing momentum. However, the pair’s inability to break above the 20-day SMA continues to cast doubt on the sustainability of any bullish momentum.
To shift the sentiment meaningfully, EUR/USD would need to close decisively above the 20-day SMA at 1.0520. Until then, the downside bias persists, with initial support at the psychological 1.0500 level, followed by the 1.0480 region. A sustained break below these levels could accelerate losses, further solidifying the bearish outlook.
EUR/USD daily chart
