• EUR/USD kicked off Monday trading around the 1.0900 mark, after easing back from higher levels achieved earlier in the session.
• Looking at the bigger picture, the overall trend still suggests upward momentum, with key moving averages reinforcing a bullish perspective despite some short-term uncertainty.
• For those watching the charts, technical support appears to be in the 1.0880–1.0860 region, while resistance is expected around 1.0996.

The EUR/USD pair experienced a slight dip on Monday, drifting back towards the 1.0900 area after initially testing higher ground near 1.1050 earlier in the day. Even with this minor pullback during the day, the pair maintains a bullish structure, bolstered by the upward direction of moving averages. The trading session following the European market close presented a mixed bag of short-term signals from various indicators.

Daily chart

When considering momentum indicators, it’s wise to be a little cautious in the immediate future. Specifically, the Moving Average Convergence Divergence (MACD) is showing a sell signal, possibly indicating a softening of upward momentum. Meanwhile, the Relative Strength Index (RSI) is currently at 57.85, which is essentially neutral, suggesting neither strong buying nor selling pressure. The Commodity Channel Index (CCI) at 92.64 and Bull Bear Power at 0.02 are also showing little movement, reflecting this current state of indecision.

However, when we step back and consider the broader technical picture, it still seems to favor buyers. The 10-day Exponential Moving Average (EMA) at 1.0881 and the 10-day Simple Moving Average (SMA) at 1.0853 are providing nearby support. Furthermore, the 20-day SMA at 1.08647 continues its upward trajectory. Looking at longer-term measures, like the 100-day SMA at 1.0533 and the 200-day SMA at 1.0735, they continue to reinforce a solid bullish underlying trend.