EUR/USD Technical Analysis: Drops to one-week low, tests 50% Fibo. level support

   •  The pair extended its intraday rejection slide from 50-day SMA and dropped to one-week lows, further below mid-1.1300s during the mid-European session on Monday.

   •  A sustained break through 200-hour SMA – for the first time in nearly two weeks, was seen as a key trigger for bearish traders and behind the latest leg of a downfall. 

   •  Meanwhile, the recent price action, wherein the pair repeatedly failed to sustain/build on its momentum beyond the 1.1400 handle, clearly points to persistent selling bias.

   •  The pair has now dropped to 50% Fibo. level of the 1.1234-1.1420 recent up-move, with bearish oscillators on 4-hourly/daily charts adding credence to the negative outlook. 

   •  However, technical indicators on the 1-hourly chart are already pointing to slightly oversold conditions and warrant some consolidation before the next leg of depreciating move.

EUR/USD 1-hourly chart