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.
Related- EUR/USD Drops Below 1.0200 as Dollar Recovery Continues
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.
Source- FxStreet
