The EUR/USD pair is struggling to maintain its medium-term uptrend line, as it faced a new seven-week low of 1.0530 on Monday amidst a bearish sentiment in the market. Technical indicators suggest that the pair could face further losses, with the 20- and 50-day simple moving averages posting a bearish crossover and the MACD extending its bearish structure beneath its trigger and zero lines.
The RSI is also pointing down in the negative region, indicating that the pair is likely to face continued downward pressure. If this sentiment prevails, the seven-week low of 1.0530 could act as a major support ahead of the 1.0480 barrier and the 38.2% Fibonacci retracement level of the up leg from 0.9535 to 1.1030 at 1.0460.
A drop below this level would reinforce the bearish structure and open the way towards the next key level of the 200-day SMA at 1.0330. However, if there is an upside reversal, the 23.6% Fibonacci retracement at 1.0680 could act as a barrier before the pair is able to re-challenge the bearish cross of the SMAs at 1.0725.
A break above this line would shift the outlook to a more neutral one, meeting 1.0800 and the 1.1030 peak. More gains could add optimism for more bullish movements towards 1.1180.
Overall, the EUR/USD pair has posted a bearish wave from the 1.1030 peak, but if there is a daily close beneath the uptrend line again, this may open the way for more losses. Traders should keep a close eye on technical indicators and market sentiment to make informed trading decisions.
