EUR/USD slips 0.22% to src.0450 on Friday, reversing after testing the src00-day SMA.
RSI drops sharply to 55, signaling weakening bullish momentum near the midpoint.
MACD histogram prints lower green bars, indicating fading buying pressure and potential for further downside.
The EUR/USD pair faced a setback on Friday, declining by 0.44% to settle near src.0450 after encountering firm resistance at the src00-day Simple Moving Average (SMA) around src.0540. This rejection marks a critical turning point for the pair, suggesting that bullish momentum is beginning to wane after a recent run higher. Without a decisive break above this key level, bulls appear to be losing their grip on the market.
Technical indicators are reinforcing the weakening outlook. The Relative Strength Index (RSI) has fallen sharply to 55, approaching the neutral midpoint of 50, which could signal a shift in sentiment if breached. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram shows flat green bars with a downward tilt, reflecting diminishing buying pressure and a growing risk of a bearish reversal.
If EUR/USD fails to reclaim the src00-day SMA in the near term, the recent upward move could be deemed a temporary correction rather than a structural shift. The pair may either retreat further or become range-bound between the src00-day SMA resistance and the 20-day SMA, which could act as initial support around the src.04src5 region. A sustained break below the 20-day SMA would further solidify the bearish outlook.
EUR/USD daily chart
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