The currency pair retreated from a six-week high, testing key technical levels amid shifting momentum indicators.
EUR/USD erased early gains on Monday, falling below the 1.1600 mark after peaking at 1.1614, its highest level in six weeks. The pair now trades near the day’s low of 1.1561, just below the 100-day Simple Moving Average at 1.1568, a critical resistance point.
Technical analysis shows the pair recently broke above a six-month downtrend line, shifting sentiment from bearish to neutral. Resistance lies at 1.1600 and the 200-day SMA at 1.1629, while support is seen at 1.1500 and the 50-day SMA at 1.1466. The Relative Strength Index remains bullish but has flattened, signaling potential consolidation.
Failure to close above 1.1600 could trigger a pullback toward 1.1400, while a break above may target 1.1650. Traders are watching these levels closely as the pair navigates shifting momentum dynamics.