EUR/USD extended its daily decline to the 1.0500 level in the latter part of the US trading session, pressured by deteriorating market sentiment. Despite early-week upward movements, the pair continues to register a weekly loss.
EUR/USD dropped below 1.0570 (the 100-day Simple Moving Average, Fibonacci retracement level of 23.6% from the recent downtrend) and the 4-hour chart's Relative Strength Index (RSI) dipped below 50, indicating a short-term bearish trend.
If EUR/USD rises above 1.0570 and begins to use that level as support, the pair could gather momentum and target 1.0600 (psychological level) and 1.0640-1.0650 (38.2% Fibonacci retracement level, 200-day SMA).
On the flip side, support levels are located at 1.0500 (psychological level) and 1.0450 (the recent low) if 1.0570 is maintained.
This analysis suggests that EUR/USD is currently in a delicate position, with the 1.0570 level being crucial for determining its short-term direction and potential impact on the weekly performance.