• EUR/USD is currently trading near the 1.0820 level after the European trading session, marking its third consecutive day of decline.
• Despite a dip of over 1% this week, the recent bullish crossover between the 100-day and 200-day Simple Moving Averages (SMAs) could provide a strong foundation.
• Bearish momentum is building as indicators shift, with the Relative Strength Index (RSI) falling sharply and the Moving Average Convergence Divergence (MACD) showing a new red bar.

EUR/USD experienced a downturn on Friday after the close of European markets, drifting towards the 1.0820 area as it notched its third straight day in negative territory. After a robust climb earlier in the month, the pair has given back over 1% this week, and momentum indicators are now starting to signal a potential bearish shift. However, underlying support still appears solid, with key moving averages positioned beneath the current price levels.

The Relative Strength Index (RSI) has sharply pulled back from positive territory and is now hovering around neutral, suggesting a weakening of bullish momentum. Concurrently, the Moving Average Convergence Divergence (MACD) indicator has changed direction, displaying a fresh red bar, which reinforces the idea of weakening momentum in the short term.

Looking at the bigger picture, a bullish crossover between the 100-day and 200-day Simple Moving Averages has formed this week, establishing a firm technical floor near the 1.0730 region. This development could help cushion further drops, even if sellers continue to exert pressure on the pair in the near future.

Turning our attention to what’s next, immediate support is anticipated in the 1.0780-1.0730 zone, precisely where the moving average crossover took place. A break below this zone might pave the way for further losses, potentially towards 1.0660. On the upside, resistance is currently observed at 1.0900, followed by 1.1000 should buyers regain control of the market.

EUR/USD daily chart