EUR/USD is struggling to find direction on Monday and continuing to move sideways around 1.1450. The dollar stays in a consolidation phase following last week's rally. ECB's Lagarde reiterated that conditions for a rate hike are very unlikely to be met in 2022.
From a technical point of view, the EUR/USD pair is at risk of falling further. The daily chart shows that technical indicators barely corrected from almost oversold readings, reflecting the absence of buying interest. Additionally, the pair keeps developing below bearish moving averages, with the 20 SMA being at around 1.1575.
In the near term, and according to the 4-hour chart, the risk is becoming smaller. Technical indicators have corrected oversold conditions and resumed declining, with the Momentum rejected from around its 100 level. Meanwhile, the 20 SMA extended its slide far below the longer ones and now it is acting as dynamic resistance near the daily high.
Support levels: 1.1430 1.1390 1.1350
Resistance levels: 1.1470 1.1515 1.1550
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