EUR/USD Bearish Bias Persists Amid Technical Resistance
The EUR/USD pair remains below its 100-day simple moving average (SMA), which has acted as a strong resistance zone for the currency pair. This technical indicator smooths out price fluctuations over a longer period, offering a clearer view of the medium-term trend.
Traders have repeatedly failed to sustain moves above this key level, underscoring the persistence of a broader bearish bias that has dominated the market over recent weeks. A sustained break above the 100-day SMA would signal a potential shift in momentum, opening the door for a test of the 200-day SMA and possibly the 1.1000 psychological level.
The Relative Strength Index (RSI) remains in neutral territory, indicating that the pair is not oversold but could extend its decline if the broader bearish drivers persist. Market sentiment is influenced by the divergence in monetary policy between the European Central Bank (ECB) and the Federal Reserve, with the Fed signaling a slower pace of rate cuts while the ECB is widely expected to ease policy further.