EUR/USD: Persistent selling interest at higher levels

EUR/USD failed to capitalize on Friday’s early attempted bounce beyond 1.0800 mark. Haresh Menghani, an analyst at FXStreet, examines the EUR/USD pair’s technical outlook for this week.

Key quotes

“EUR/USD previous session's intraday pullback points to persistent selling interest at higher levels. This comes on the back of a break below a 2-1/2-year-old descending trend-line support and further reinforces the near-term bearish outlook.” 

“Diverging RSI on the daily chart warrants some caution before positioning for any further near-term depreciating move.”

“The 1.0800 round-figure mark now seems to act as immediate resistance and is closely followed by the 1.0830-35 supply zone.”

“On the flip side, the EUR/USD pair might continue to find some support near mid-1.0600s, which if broken will reaffirm the bearish bias and set the stage for a slide towards the next relevant support, around the 1.0590 region.”