EUR/USD declines to 1.1650: Bearish signal from technical indicators

Selling pressure dominates the market after the Asian session on Monday

The EUR/USD currency pair is experiencing a weakening phase, trading around 1.1660 after a slight rebound in the previous session. Today’s market conditions in Asia indicate that sellers still hold control, especially as market indicators signal downward momentum.

RSI confirms bearish momentum

The (RSI) (Relative Strength Index) over the current 14-day period is at 42.69, below the neutral 50 level, indicating that short-term momentum is waning. This position suggests that selling pressure remains dominant. Furthermore, RSI has not fallen into the (oversold territory), implying that the correction phase may continue.

Moving averages confirm a downtrend

Analysis shows that the 9-day EMA is in a declining trend, while the 50-day EMA remains flat and stagnant. Currently, EUR/USD is trading below both moving averages. This situation ultimately supports a slowdown in bullish momentum.

However, since the short-term moving averages are still above the midline, this ultimately serves as a warning that the long-term uptrend has not been entirely invalidated but is in a state of deterioration.

Lowest at 1.1589 and continued targets

With selling pressure increasing, EUR/USD may test the six-week low of 1.1589, recorded on December 1. If the pair breaks below this support level, it could open the path toward the August 2025 low at 1.1468.

Key resistance levels and disemployment scenario

The first resistance is at the 50-day EMA (1.1679), close to the 9-day EMA (1.1681). If EUR/USD can close daily above both moving averages, bullish momentum may resume, pushing toward the three-month high at 1.1808 (recorded on December 24), and potentially reaching 1.1918, the highest level since June 2021.