The EUR/USD pair has edged lower for the second consecutive day, trading around 1.0780 during the Asian session on Monday. Daily chart analysis indicates that the pair is testing the upper boundary of a descending channel, which could reinforce a bearish outlook.
The 14-day Relative Strength Index (RSI) is slightly above the 30 level. A decline below this threshold would signal an oversold condition, potentially paving the way for a near-term upward correction.
On the downside, immediate support is noted at the upper boundary of the descending channel around 1.0770. If the pair reverts to the channel, it may face pressure to navigate toward the psychological level of 1.0600. A break below this level could intensify selling pressure, with potential movement toward the lower boundary of the channel near 1.0670.
Conversely, resistance levels are identified around the nine-day Exponential Moving Average (EMA) at 1.0826, followed by the psychological barrier at 1.0900.
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