EUR/USD declines Amid Deepened Bearish Bias

The EUR/USD currency pair experienced a sharp decline at the beginning of the week, falling by 0.35% to trade near the 1.0400 level. This marked a reversal of the modest gains observed in the preceding sessions, highlighting the persistent bearish sentiment dominating the market. The 20-day Simple Moving Average (SMA), currently situated around 1.0500, continues to act as a significant resistance level, effectively capping any attempts by buyers to push prices higher.

Technical indicators further solidify this bearish outlook. The Relative Strength Index (RSI) has dipped below the 40 level, a sign of intensified selling pressure. Concurrently, the Moving Average Convergence Divergence (MACD) histogram remains flat and in negative territory, indicating a lack of upward momentum. This combination of technical signals suggests that the pair may be susceptible to further declines unless it can decisively break above the 20-day SMA.

While the possibility of market-moving fundamental news events remains, the current technical picture strongly favors a continuation of the downward trend for the EUR/USD. The pair’s inability to overcome the 20-day SMA resistance and the negative signals from the RSI and MACD suggest that a sustained rally is unlikely in the near term.