EUR/USD came under heavy bearish pressure following a consolidation phase in the European session and declined below 1.0850.
The EUR/USD pair is under mild pressure, but technical readings in the daily chart are far from suggesting a steeper decline coming up. The pair remains above all its moving averages, with the 20 SMA partially losing its bullish strength and providing dynamic support at around 1.0810.
At the same time, technical indicators continue to retreat from near overbought readings, heading south within positive levels.
The 4-hour chart shows that bears are taking advantage of thin trading. The pair accelerated its decline after repeatedly failing to overcome a mildly bearish 20 Simple Moving Average (SMA), although the longer moving averages maintain their bullish strength.
The 100 SMA provides immediate support at 1.0830, with a break below it exposing 1.0745, the 61.8% retracement of the 2022 yearly slump and a strong static support level. Finally, technical indicators confirm the downward bias, heading firmly lower within negative levels after failing to retain positive ground.
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