EUR/USD remains under selling pressure around the 1.1850 level.

EUR/USD is slipping for a fifth consecutive session, though it continues to trade above the crucial 20-day SMA. Momentum indicators remain in positive-to-neutral territory, with the RSI hovering slightly above its midpoint and flattening, while the MACD stays above zero but just below its signal line — a sign that upside momentum has eased without fully turning bearish.

The pair is stabilizing around 1.1865, extending its retreat from the 1.1900 area even as the US dollar softened on Friday following weaker inflation data that strengthened expectations of Fed rate cuts. Trading conditions are relatively quiet on Monday due to the US President’s Day holiday.

If price rebounds from the short-term ascending trendline and breaks above the 38.2% Fibonacci retracement of the January 27–February 6 decline at 1.1885, the next resistance could appear near 1.1923, which aligns with the 50% Fibonacci level and recent monthly highs. A stronger push higher may target the 1.1960–1.1974 zone, just beneath the key 1.2000 mark — the highest level since mid-2021.

On the downside, further weakness could bring the pair back toward the 20-day SMA near the 23.6% Fibonacci level at 1.1839. Below that, attention would shift to the 1.1800–1.1820 area, followed by the February 6 low of 1.1765, which sits just above the 50-day SMA.

Overall, despite the recent pullback, the near-term outlook remains constructive as long as EUR/USD holds above the 20-day SMA, with the 50-day SMA acting as stronger support in case of a deeper correction.

Sources: Nicola joined