- EUR/USD oscillates in a narrow trading range near 1.0770 in Monday’s early European session.
- The pair maintains the bearish outlook below the key EMA.
- The immediate resistance level will emerge at the 1.0790–1.0800 region; the initial support level is seen at 1.0724.
The EUR/USD pair remains flat around 1.0770 on Monday during the early European trading hours. The pair struggles to find a clear direction ahead of the key US events this week. The US April Producer Price Index (PPI) will be due on Tuesday, and the final reading of the Consumer Price Index (CPI) will be released on Wednesday.
Technically, EUR/USD remains stuck within a descending trend channel since mid-December 2023. The major pair keeps the bearish vibe unchanged as it is below the key 100-period Exponential Moving Average (EMA) on the daily timeframe. Nonetheless, the 14-day Relative Strength Index (RSI) stands in bullish territory around 54.5, suggesting that further upside cannot be ruled out.
The crucial upside barrier for EUR/USD will emerge near the 100-day EMA and the upper boundary of the descending trend channel in the 1.0790–1.0800 zone. A bullish breakout above the latter will see a rally to a high of April 9 at 1.0885. Further north, the next hurdle is seen near a high of March 21 at 1.0943, en route to a high of March 8 at 1.0981, and finally the 1.1000 psychological level.
On the flip side, the initial support level is located around a low of May 9 at 1.0724. Any follow-through selling below this level will see a drop to a low of May 2 at 1.0650, en route to a low of April 16 at 1.0600. The additional downside filter to watch is the lower limit of the descending trend channel at 1.0515.
EUR/USD daily chart
