At the start of the new week, the EUR/USD pair has gained upward momentum on the back of a weaker US dollar.
From a technical standpoint, last week's break below the 200-period Simple Moving Average (SMA) on the 4-hour chart was interpreted as a significant bearish trigger. However, at the moment, the pair is attempting to hold above the 200 SMA. If the price manages to break through the psychological level of 1.1300 and consolidate above it, the bearish bias could be invalidated, potentially triggering short-covering. This upward momentum could extend further toward the resistance zone around 1.3750, en route to the next psychological level at 1.4000 and beyond.
On the other hand, the 1.1170 level serves as the first key support ahead of the 1.1100 round figure and the monthly low. A decisive break below this low would confirm the negative outlook, making the EUR/USD pair vulnerable to further downside acceleration toward the critical psychological mark of 1.1000.
