EUR/USD Price Analysis: Bulls lose steam as correction unfolds
- EUR/USD was seen trading around the 1.0895 area after the European session, posting a moderate decline.
- The pair confirms a corrective phase as buyers lose grip, with the recent price action suggesting further downside.
- RSI is escaping the overbought zone, signaling the potential for extended losses if bearish momentum builds.
EUR/USD moved lower on Wednesday after the European session, retreating toward the 1.0895 zone following recent strong gains. The pair’s correction was largely anticipated as momentum indicators flashed overbought signals earlier in the week.
From a technical perspective, the Relative Strength Index (RSI) is moving sharply lower, now exiting overbought conditions. This suggests that selling pressure may persist in the near term. Meanwhile, the Moving Average Convergence Divergence (MACD) is printing flat green bars, signaling a potential loss of bullish momentum.
Support is now seen at the 1.0850 zone, with stronger demand likely emerging around 1.0800. On the upside, resistance stands at 1.0950, followed by 1.1000, which remains a key hurdle for buyers.
EUR/USD daily chart
With the RSI breaking out of overbought territory, traders should watch for further downside in the coming sessions. If selling pressure intensifies, EUR/USD could extend losses toward the 1.0800 region, while a recovery above 1.0950 would be needed to reignite bullish momentum.