The EUR/USD pair stays under bearish pressure and trades in negative territory below 1.1100 on Monday. The data from the US showed that the business activity in the private sector continued to expand in July, albeit at a softer pace than in June, helping the US Dollar hold its ground.
The EUR/USD pair broke below the 38.2% Fibonacci retracement of its latest bullish run measured between 1.0833 and 1.1275 at 1.1105, later meeting sellers around the latter on a failed attempt to recover its poise.
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The daily chart shows that the pair is losing ground for a fifth consecutive day, which skews the risk to the downside. Nevertheless, EUR/USD is still developing above all its moving averages, with a bullish 20 Simple Moving Average (SMA) offering dynamic support at around 1.1040. Furthermore, the Momentum indicator is stable within positive levels, while the Relative Strength Index (RSI) indicator heads south at around 56.
The pair reached oversold conditions in the near term. The 4-hour chart shows that technical indicators are bouncing modestly from extreme readings, lacking enough positive momentum to deny additional slides. At the same time, the pair trades well below a bearish 20 SMA, while a bullish 100 SMA converges with the 50% retracement of the mentioned rally at 1.1050.
Support levels: 1.1040 1.1005 1.0960
Resistance levels: 1.1110 1.1155 1.1190