EUR/USD Price Forecast: Consolidates above 1.1350 pivotal support as bearish bias persists
The EUR/USD pair fills a modest weekly bearish gap, though it lacks bullish conviction and struggles below the 1.1400 mark through the Asian session on Monday.
The EUR/USD currency pair is currently trading near its lowest level since July 28, at 1.1350, as it consolidates above a crucial support level. This consolidation comes despite a persistent bearish bias, as indicated by technical indicators like the 200-day Exponential Moving Average (EMA) and the Moving Average Convergence Divergence (MACD) indicator.
The pair is also experiencing oversold conditions, with the Relative Strength Index (RSI) hovering around 28. The US Dollar remains strong, bolstered by hawkish Federal Reserve outlooks, oil-driven inflation concerns, and geopolitical tensions between the US and Iran. Analyst Haresh Menghani advises waiting for a follow-through sell-off below the 1.1350 support before considering further weakness towards the year-to-date low of 1.1325, or a potential rebound towards the 1.1300 round figure.
A move above 1.1460 could lead to a higher high, but the pair is expected to remain capped near the 200-day Simple Moving Average (SMA) at 1.1557. The next significant data points for the US economy, including the Personal Consumption Expenditures (PCE) Price Index and the final Q2 GDP print, are expected to influence the EUR/USD pair.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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