EUR/USD Price Analysis: Cable plunges below the 1.0500 level
- The EUR/USD fell by more than 1% to open the week.
- The 1.0500 mark is gone and the pair fell further below the 20-day SMA.
- Indicators suggest that the selling momentum may have more room to go.
The EUR/USD pair kicked off the week with a sharp decline, falling over 1% and decisively breaking below the psychological 1.0500 mark. This move also pushed the pair further beneath the 20-day Simple Moving Average (SMA) which has acted recently as a strong resistance.
The technical indicators align with the bearish outlook, suggesting that further downside may be in play. The Relative Strength Index (RSI) is pointing downward at 37, inching closer to oversold territory but still indicating room for more selling pressure. Meanwhile, the MACD histogram is printing lower green bars, reinforcing the view that bearish momentum is strengthening.
The break below 1.0500 and the technical indicators suggest that the pair is poised for further losses unless a significant reversal catalyst emerges. Traders will be closely watching the 1.0450 and 1.0430 levels for signs of potential stabilization or a continuation toward 1.0400.