EUR/USD came under bearish pressure and declined below 1.0600 on Wednesday. The cautious market stance, as reflected by the bearish action in Wall Street, helps the US Dollar stay resilient against its rivals and weighs on the pair ahead of the ECB’s policy announcements.
From a technical point of view, the EUR/USD pair is at risk of extending its slide. In the daily chart, the pair is barely holding above a mildly bullish 20 Simple Moving Average (SMA), providing dynamic support at 1.0560.
At the same time, technical indicators extended their slides, and the Momentum indicator is about to cross its 100 level into negative territory. In contrast, the Relative Strength Index (RSI) indicator stands at around 46, in line with increased bearish pressure.
In the near term, and according to the 4-hour chart, the risk skews to the downside. EUR/USD met sellers around a mildly bearish 200 SMA, while the 20 SMA has lost its bullish strength above the longer one. Finally, technical indicators head south with uneven strength but still support a downward extension in the upcoming session.
Support levels: 1.0560 1.0520 1.0480
Resistance levels: 1.0640 1.0685 1.0720