EUR/USD Price Analysis: Bulls pause as pair faces key technical test

• EUR/USD slips to 1.0450 on Tuesday, cooling off after last week's strong rally.
• RSI declines sharply to 55, signaling waning bullish momentum while MACD remains flat with green bars.
• The 20-day and 100-day SMAs are converging near 1.0450, raising concerns over a potential bearish crossover.

EUR/USD took a step back on Tuesday, shedding 0.32% to trade near 1.0450 as bulls lost some ground after last week’s impressive rally. The pair remains above the 20-day Simple Moving Average (SMA), keeping the broader outlook constructive for now. However, the latest price action suggests that buying momentum is fading.

Technical indicators reflect this shift. The Relative Strength Index (RSI) has sharply declined to 55, showing weakening bullish traction, while the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, highlighting hesitation among buyers. A key technical factor to watch is the 20-day and 100-day SMA convergence around 1.0450. If a bearish crossover materializes, it could invalidate recent gains and reinforce a downside bias.

For now, as long as EUR/USD holds above the 20-day SMA, buyers still have a chance to push higher. However, a sustained break below this level would expose the pair to further losses, with immediate support at 1.0420 and deeper downside risks toward 1.0380.

EUR/USD daily chart