EUR/USD Analysis: Dynamics Amid a Softening US Dollar – FX Leaders

During Monday’s Asian trading window, the EUR/USD currency pair experienced a modest uptick, influenced largely by the US Dollar (USD) weakening trend. At present, the pair hovers around 1.0522, marking a 0.22% ascent for the day.

Insights from the four-hour chart indicate that the EUR/USD remains confined beneath the 50- and 100-hour Exponential Moving Averages (EMAs) that have a declining trajectory. This configuration suggests that the pair’s inclination is predominantly bearish. Reinforcing this view, the Relative Strength Index (RSI) stands below the 50 mark, signalling that further depreciation remains possible.

From a resistance standpoint, the immediate threshold for the EUR/USD lies close to the 50-hour EMA at 1.0558. A secondary resistance layer can be discerned near the 100-hour EMA at 1.0578. Should the pair breach this level, it may potentially advance to the significant 1.0600 barrier, reflecting both a psychological milestone and the peak from October 6. Beyond this, the pair might challenge the 1.0640 high from October 12, and subsequently, 1.0655, which marks the Bollinger Band’s upper limit.

Contrastingly, the Bollinger Band’s lower boundary at 1.0477 serves as the EUR/USD’s primary support. The subsequent support layer is situated close to the October 4 low at 1.0450.

Further down, the 1.0400-1.0405 range stands as a notable support region, symbolizing a mental benchmark. A firm breach below this zone could propel the pair towards 1.0330.