- EUR/USD’s MACD histogram is at the lowest since mid-November.
- The pair looks set to extend the recent downtrend from 1.1240 to support at 1.0981.
EUR/USD has dropped from 1.1240 to 1.1020 over the last four weeks and may continue to exhibit pressure behavior this week as the MACD histogram is reporting the strongest bearish bias in over two months.
The daily chart indicator is currently printing a value of -0.00139, the lowest reading since Nov. 14. A negative number indicates bearish market conditions, while an above-zero print represents a bullish market.
The indicator is printing deeper bars below the zero line – a sign of the strengthening of bearish momentum.
The pair could challenge to 1.0981 (Nov. 29 low), under which sellers may attack next support near 1.0950.
The hourly chart relative strength index is currently reporting a bullish divergence. A bounce to 1.1062 (hourly chart hurdle) may be seen before a deeper drop is seen, as suggested by the daily chart.
At press time, EUR/USD is trading at 1.1035, representing moderate gains on the day, having hit a low of 1.1020 on Friday.
Daily chart
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Trend: Bearish
Technical levels
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