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EUR/USD attempts to stay above the 1.0500 psychological level.
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Momentum indicators suggest a potential bearish sentiment in the market.
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The region around January’s low could act as a key support.
EUR/USD attempts to snap the losing streak that began on September 19, hovering around 1.0500 psychological level during the Asian session on Thursday. The pair is under pressure due to risk aversion, coupled with upbeat US Treasury yields and economic data.
On Wednesday, Germany’s subdued Gfk consumer confidence survey weighed on the EUR/USD pair. Consumer sentiment fell to -26.5 in October from -25.6 previously.
The current bearish momentum in EUR/USD appears to have a potential bearish bias as the 14-day Relative Strength Index (RSI) remains below the 50 level. However, there is a support zone near the January low of 1.0481 that could pose a challenge for further losses.
If there is a break below the level, it could lead the EUR/USD bear to navigate the area around the psychological level at 1.0450.
On the upside, the EUR/USD pair may encounter significant resistance levels in its price movement. The seven-day Exponential Moving Average (EMA) at 1.0575 could act as a barrier, followed by the 1.0600 psychological level.
If the pair breaks above the latter, it may then explore the region around the 23.6% Fibonacci retracement at 1.0673.
The Moving Average Convergence Divergence (MACD) indicator is providing a bearish signal for the EUR/USD pair. The MACD line lies below the centerline and the signal line. This configuration suggests that there is potentially weak momentum in the price movement.
EUR/USD: Daily Chart
EUR/USD: ADDITIONAL IMPORTANT LEVEL
