EUR/USD has started the new week on a bearish note amid a souring market mood. The pair continues to push lower toward the significant support area that seems to have formed at 1.0200 and a drop below that level could attract sellers and open the door for an extended decline.
EUR/USD extends losses to test 1.0200, undermined by a broad rebound in the US dollar after dismal Chinese data soured sentiment. Growing recession fears in the Eurozone amid the deepening energy crisis weigh down on the euro.
For the technical analysis, the EUR/USD faces immediate support at 1.0230 (Fibonacci 38.2% retracement of the latest downtrend) ahead of 1.0200.
It was here the 100-period and the 200-period SMAs on the four-hour chart are located. A four-hour close below the latter could be seen as a bearish development and attract sellers. In that scenario, the 1.0150 (static level) could be seen as the next target on the downside.
1.0300 (Fibonacci 50% retracement) aligns as strong resistance ahead of 1.0370 (Fibonacci 61.8% retracement) and 1.0400 (psychological level).
Meanwhile, the Relative Strength Index (RSI) indicator on the four-hour chart declines toward 40, pointing to a buildup in bearish momentum.