EUR/USD is trading under modest bearish pressure on Monday and continues to edge lower toward 1.1300. The renewed dollar strength on rising US Treasury bond yields seems to be weighing on the pair. The US Dollar Index is testing 96.00 after falling more than 0.5% on Friday.
The EUR/USD pair keeps lacking directional strength, confined to a 200 pips range since late November. The daily chart shows that it is currently hovering around a flat 20 SMA, while technical indicators lost their bullish strength and retreated towards their midlines, indicating absent buying interest. The longer moving averages maintain their bearish slopes far above the current level.
The 4-hour chart offers a similar picture, as the pair is back seesawing around its moving averages, all of them directionless and confined to a tight range. Technical indicators have turned lower, with the Momentum nearing its 100 level from above and the RSI currently at 48, reflecting increased selling interest without confirming a new leg south.
Support levels: 1.1305 1.1260 1.1220
Resistance levels: 1.1345 1.1385
