EUR/USD marked its second consecutive day of gains, extending its recent breakout above the 1.0500 level in response to the US Dollar's uncertain stance ahead of key US data releases later this week.
The 4-hour chart indicates that technical risks remain tilted to the downside, as the pair continues trading below all its moving averages. These averages maintain a bearish slope, creating dynamic resistance around the 1.0560 level. Meanwhile, technical indicators remain within negative territory, lacking clear directional strength.
In the short term, and according to the 4-hour chart, EUR/USD appears poised to extend its decline. The pair is trading below the bearish-moving averages, encountering sellers near the EMA 34 and 89 levels. Finally, technical indicators are neutral-to-bearish, positioned below their midlines, supporting the extension of the downtrend without providing a definitive confirmation.
Support levels: 1.0465, 1.0420, 1.0370 Resistance levels: 1.0560, 1.0625, 1.0660
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