EUR/USD remains on the back foot in the early American session on Monday pressured by the renewed USD strength. Despite the disappointing Chicago Fed National Activity Index data, the US Dollar Index continues to advance toward 94.00.
From a technical point of view, EUR/USD is poised to extend its slump. It has broken below the 23.6% retracement of its latest daily slump after meeting sellers around the 38.2% retracement of the same slide in the previous week. The daily chart shows that the pair is currently challenging a bearish 20 SMA, as technical indicators are gaining bearish traction, the momentum within neutral levels and the RSI currently at around 42.
In the near term, and according to the 4-hour chart, the case for a continued decline is stronger, as technical indicators head south almost vertically within negative levels, as the pair broke below a flat 20 SMA and is currently extending below an also directionless 100 SMA. A steeper decline could be expected on a break below 1.1570, with market participants then eyeing a retest of the year low at 1.1525.
Support levels: 1.1570 1.1525 1.1480
Resistance levels: 1.1615 1.1670 1.1715
