EUR/USD Holds Above Key Support as Market Awaits Directional Cues
EUR/USD edged lower on Monday, slipping 0.05% as the U.S. dollar steadied in a subdued session with no significant economic data from the Eurozone or U.S. to guide sentiment. Rising Brent oil prices (+1.8%), driven by tougher U.S. sanctions on Russian supplies to China and India, provided some support for the dollar, though overall trading conditions remained muted. Market participants are focusing on technical levels, with EUR/USD poised above critical supports as it struggles to gain traction amid bearish momentum.
Technical Analysis
Technically, EUR/USD remains under pressure, with daily momentum studies easing and 5-, 10-, and 21-day moving averages trending lower, signaling a negative setup. Immediate resistance is seen at Friday’s 1.0312 high, followed by the previous week’s peak at 1.0437. On the downside, support is located at Friday’s low of 1.0212, with further protection at 1.0195, representing the 61.8% Fibonacci retracement of the 2022-2023 rise. Key options-related levels at 1.0200 (€3.887 billion) and 1.0250 (€2.507 billion) may also act as magnets, keeping price action contained in the near term.
Market Outlook
With no major data releases on the calendar, sentiment and news flows will dominate EUR/USD’s direction. The pair’s ability to hold above 1.0195 will be critical for maintaining current levels, while a sustained break below could open the door for further declines toward the psychological 1.0100 mark. Conversely, a rally above 1.0312 could target the 1.0437 resistance zone. For now, EUR/USD is likely to remain range-bound as traders await fresh catalysts.