- EUR/USD slips to around 1.0965 in the early European session on Monday.
- The pair's bullish outlook appears fragile on the daily chart, with the RSI indicator remaining below the midline.
- The initial support is at 1.0881, while immediate resistance stands at 1.1000.
The EUR/USD pair remains in negative territory for the seventh consecutive day, trading near 1.0965 during Monday's early European session. The pair continues to face selling pressure due to the strengthening US Dollar (USD), following the release of strong US jobs data on Friday, which has led traders to scale back expectations of a 50 basis point (bps) rate cut by the Federal Reserve in November.
On the daily chart, the bullish outlook for EUR/USD appears fragile as the pair hovers near the critical 100-day Exponential Moving Average (EMA). A decisive break below the 100-day EMA could signal a continuation of the downside bias. This is further supported by the Relative Strength Index (RSI), which is positioned below the midline at 37.55, indicating that the path of least resistance is to the downside.
If the pair breaks decisively below the 100-day EMA at 1.0970, it could drop to 1.0881, the low from August 8. The key support zone lies between 1.0805 and 1.0800, marking the low from July 9 and a significant round number.
On the upside, the first resistance is at the psychological level of 1.1000. If the pair extends its gains, it could rally toward 1.1144, the high from October 1. A break above this level may open the door for further gains toward 1.1223, the upper boundary of the Bollinger Band.
EUR/USD daily chart
