- EUR/USD fell 0.33% on Tuesday, settling at 1.0525 after falling below the 20-day SMA.
- The RSI drops sharply to 40, remaining in the negative area, signaling weakening momentum.
- The MACD histogram displays decreasing green bars, highlighting the fading bullish grip.
The EUR/USD pair extended its losses on Tuesday, retreating to 1.0525 and falling just below the 20-day basic moving average (SMA). This situation undermines the pair’s short-term constructive prospects, raising concerns about further downside risks in the event of a definitive breach of the 20-day SMA.
Technical indicators indicate weakening dynamics. The relative strength index (RSI) dropped sharply to 40, signaling increased selling pressure and remaining firmly in negative territory. Similarly, the moving average divergence (MACD) histogram shows decreasing green bars, which indicates the uptrend is weakening and the bearish trend is strengthening.
On the other hand, the loss of the 20-day SMA around 1.0550 puts the pair at risk of further declines, with the next support levels at 1.0500 and 1.0480. For any recovery to occur, EUR/USD must first reclaim the 20-day SMA and then break above the resistance level at 1.0600 to revive the uptrend and shift the momentum back to the bulls’ favor.
