EUR/USD Price Analysis: Falls toward 1.0200 near 27-month lows

• EUR/USD struggles as it is confined within a descending channel pattern.
• The 14-day RSI drops near the 30 level, indicating persistent selling pressure on the pair.
• The primary support appears at 1.0177, a 27-month low reached on January 14.

The EUR/USD pair continues its downward trend, which started on January 27, trading around 1.0230 during the Asian session on Monday. A closer examination of the daily chart indicates that the bearish momentum is likely to persist, with the pair confined within a descending channel pattern.

The 14-day Relative Strength Index (RSI), a key indicator of momentum, is falling towards the 30 level, suggesting ongoing selling pressure on the EUR/USD pair. Furthermore, the pair remains below both the nine- and 14-day Exponential Moving Averages (EMAs), signaling weaker short-term momentum and reinforcing the bearish outlook.

The EUR/USD pair is likely to test its primary support at 1.0177, a 27-month low reached on January 14. A break below this level could push the pair towards the psychological support at 1.0000, aligning with the lower boundary of the descending channel. A decisive move below this point could intensify the bearish sentiment, potentially driving the pair down to 0.9730, the lowest level since November 2022.

On the upside, the EUR/USD pair could face initial resistance at the nine-day EMA around 1.0369. A breakout above this level could improve market sentiment, paving the way for a move toward the upper boundary of the descending channel at 1.0500. Further gains may bring the pair to the three-month high of 1.0630, reached on December 6.

EUR/USD: Daily Chart