During the Asian session, EUR/USD attempted to recover from a three-day losing streak, which on Friday drove the pair to a more than two-week low near 1.0360. However, the attempt was unsuccessful.
From a technical standpoint, EUR/USD is showing some resilience just above the 1.0400 psychological level, though the pair remains at risk of further downside. The pair appears poised to move towards resistance at 1.0450, but oscillators on the daily chart have yet to confirm a clear bullish bias. This calls for caution among buyers, especially amid uncertainty surrounding President Donald Trump's tariff policies.
A break above 1.0450 could fuel further bullish momentum, potentially pushing the pair towards the key psychological resistance at 1.0500. If the bullish breakout continues, the convergence of the 100-day SMA and 100-day EMA near 1.0535 will serve as a critical barrier for further gains.
On the other hand, immediate support lies at 1.0380, which aligns with the 50-day SMA. If selling pressure intensifies, the pair may retest Friday's low before dropping to 1.0340 and eventually the next major psychological support at 1.0300. Deeper losses could extend towards the February low at 1.0210, followed by the January low at 1.0175, with 1.0200 serving as an intermediate level.
For better trading opportunities, market participants should closely monitor the Eurozone Consumer Price Index (CPI) report during the European session and the release of key U.S. economic data during the North American session.
