EUR/USD – Rejection Below Key Resistance Maintains Bearish Pressure

EUR/USD briefly reached a one-month high of 1.0528 in early Monday trading, reacting to the German election results. However, fresh gains were quickly erased, as the outcome lacked major surprises to drive sustained bullish momentum.

The initial recovery stalled below the key 1.0533/1.0573 resistance zone (Jan 27 high, daily cloud top, 100DMA, and 38.2% Fibonacci retracement of the 1.1214–1.0177 drop). A deeper pullback could materialize if bulls continue to struggle at this barrier and the pair drops below the 1.0400 pivot (Feb 19 low and 55DMA).

Daily indicators provide mixed signals, with no clear directional bias. Inflation data suggests price pressures remain elevated, but the near-term outlook is expected to stay bullish as long as EUR/USD holds above the rising 10DMA (1.0448).

A decisive break of either 1.0400 to the downside or 1.0573 to the upside would provide stronger directional signals.

Res: 1.0506; 1.0528; 1.0547; 1.0573
Sup: 1.0448; 1.0422; 1.0400; 1.0372