- EUR/USD remains muted in the early Asian session on Tuesday.
- The pair remains pressured near 1.1550 tracking the gains in the US dollar.
- The Momentum oscillator holds onto the oversold zone and warns caution on aggressive bids.
EUR/USD continues to trade in a sell-off mode following the previous session’s lacklustre moves on Tuesday morning. The pair confides in a very narrow trade band with a downside risk ahead of the eurozone data. At the time of writing, EUR/USD is trading at 1.1549, down 0.02% for the day.
EUR/USD daily chart
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On the daily chart, the EUR/USD pair has come under renewed selling pressure after testing the highs near 1.1900 since the beginning of the September series (September 3). The pair ended the month breaking below the yearly lows around 1.1600. The October series too started on a lower note while dragging the price further near 2021 lows.
Having said that, if the price sustains the intraday’s low, it could reverse some of its losses and trace back to the previous day’s high at 1.1586. Furthermore, the Moving Average Convergence Divergence (MACD) indicator offers potential for more upside as it has remained in the oversold zone with stretched selling conditions for quite some time. Any uptick in the MACD would amplify the buying toward the 1.1600 and the 1.1650 horizontal resistance levels.
Alternatively, if the price reverses direction, the EUR/USD bears would once again dominate the trend with their eyes on Wednesday’s low of 1.1529. The price action would then target the weekly lows of July 24, 2020, at 1.1402.