EUR/USD Price Analysis: Renews monthly low under 1.0500, six-week-old support eyed

• EUR/USD stays offered for the third consecutive day, drops to fresh monthly low.
• Clear break of 200-SMA, bearish MACD signals favor sellers.
• Oversold RSI (14) could join nearby key support to probe bears.

EUR/USD takes offers to renew a multi-day low around 1.0490, printing a three-day downtrend during Monday’s Asian session.

The major currency pair’s latest weakness could be linked to the sustained trading below the 200-SMA, as well as bearish MACD signals.

However, oversold RSI conditions may restrict the pair’s further declines, which in turn highlight the 1.5-month-old horizontal support zone around 1.0470-60.

Should the EUR/USD prices drop below 1.0460, the 1.0420 level may offer an intermediate halt during the south-run targeting May’s low of 1.0349.

Alternatively, the corrective pullback may initially aim for the 61.8% and 50% Fibonacci retracements of May 13-30 upside, respectively around 1.0515 and 1.0570.

Following that, the 200-SMA level of 1.0600 will be crucial to watch. It’s worth noting that a steeper descending trend line from Thursday joins the 61.8% Fibonacci retracement level to increase the strength of the 1.0515 immediate hurdle.

EUR/USD: Four-hour chart

Trend: Limited downside expected