- EUR/USD slips 0.22% to 1.0450 on Friday, reversing after testing the 100-day SMA.
- RSI drops sharply to 55, signaling weakening bullish momentum close to the midpoint.
- MACD histogram prints decrease inexperienced bars, indicating fading shopping for stress and potential for additional draw back.
The EUR/USD pair confronted a setback on Friday, declining by 0.44% to settle close to 1.0450 after encountering agency resistance on the 100-day Easy Shifting Common (SMA) round 1.0540. This rejection marks a crucial turning level for the pair, suggesting that bullish momentum is starting to wane after a latest run larger. And not using a decisive break above this key stage, bulls seem like dropping their grip available on the market.
Technical indicators are reinforcing the weakening outlook. The Relative Power Index (RSI) has fallen sharply to 55, approaching the impartial midpoint, which may sign a shift in sentiment if breached. In the meantime, the Shifting Common Convergence Divergence (MACD) histogram is exhibiting flat inexperienced bars with a downward tilt, reflecting diminishing shopping for stress and rising danger of a bearish reversal.
If EUR/USD fails to reclaim the 100-day SMA within the close to time period, the latest upward transfer may very well be deemed a short lived correction relatively than a structural shift. The pair could both retreat additional or turn into range-bound between the 100-day SMA resistance and the 20-day SMA, which may act as preliminary help across the 1.0415 area. A sustained break beneath the 20-day SMA would additional solidify the bearish outlook.
EUR/USD day by day chart
