EURUSD bounces off support but sellers remain in control

The EUR/USD moved lower on Monday, erasing much of last week’s gains. However, the pair found support near a key swing area between 1.0448 and 1.0461, where buyers stepped in to halt the decline. This level remains a critical support zone for the pair.

Following the bounce, EUR/USD climbed back toward the 200-hour moving average (1.05106) but faced renewed selling pressure at that level. For the bulls to regain control, the pair would need to break above both the 200-hour moving average and the 100-hour moving average (1.05354). Earlier in the day, the 100-hour moving average was broken and retested twice, with sellers successfully defending the level on both occasions. As long as the price stays below these moving averages, the sellers maintain the upper hand.

On the downside, the swing area between 1.0448 and 1.0461 remains the primary support. A sustained break below this zone could open the door for further downside, targeting last Tuesday’s low at 1.04242. Beyond that, the next significant level would be the 50% retracement of the range since the 2022 low, which is located at 1.04053.

For now, the sellers remain in control unless the price can decisively break above the moving averages, tilting the bias back in favor of the buyers.

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EUR/USD Technical Analysis

The EUR/USD pair declined on Monday, erasing a significant portion of last week’s gains. However, support was found near a critical swing area between 1.0448 and 1.0461, where buyers intervened to halt the decline.

Key Levels:

• Support: 1.0448-1.0461 (swing area)

• Resistance:

• 200-hour moving average: 1.05106

• 100-hour moving average: 1.05354

Market Bias:

The sellers maintain control as long as the price remains below the moving averages. A decisive break above these levels is required for the buyers to regain control.

Downside Targets:

• Last Tuesday’s low: 1.04242

• 50% retracement of the range since the 2022 low: 1.04053

This article was written by Greg Michalowski at www.forexlive.com.