EUR/USD – Bullish momentum fades, key support at the 1.0800 zone in focus

EUR/USD remains in the red for the second consecutive day on Thursday, extending its pullback from a fresh five-month high.

A double rejection below Fibonacci resistance at 1.0969 (76.4% retracement of the 1.1214–1.0177 downtrend) and overbought daily conditions have weakened bullish momentum. Additionally, a stronger dollar, fueled by hawkish remarks from Fed Chair Powell, has added further pressure on the euro.

Despite the decline, the pair continues to trade within a near-term consolidation range (1.0820–1.0954), suggesting a neutral outlook as long as this range holds.

A decisive break below the key 1.0820/1.0800 zone (range floor, 23.6% Fibonacci retracement of 1.0360–1.0954, and psychological support) would signal an initial bearish reversal, paving the way for a deeper correction.

This scenario is reinforced by weakening momentum indicators, though the impact is partially offset by the 20-day and 200-day moving averages converging near 1.0727, where the 200DMA aligns with a key Fibonacci support level (38.2% retracement of 1.0360–1.0954), potentially forming a golden cross.

Res: 1.0880; 1.0903; 1.0954; 1.0969
Sup: 1.0820; 1.0800; 1.0727; 1.0708