EUR/USD Price Analysis: Bulls take a breather after last week's sharp rally

• EUR/USD was seen trading near the 1.0830 area after the European session, posting mild gains on Monday.
• Following a strong rally of over 4% last week, the pair enters a consolidation phase, potentially stabilizing above the 200-day SMA near 1.0780.
• Technical indicators remain in positive territory, though the RSI is slightly declining from overbought conditions, signaling a possible slowdown in momentum.

The EUR/USD pair extended its bullish momentum on Monday, trading near the 1.0830 zone after the European session. Despite the mild gains, the pair appears to be entering a consolidation phase after last week's sharp surge, during which it added more than 4%. The recent slowdown could indicate that bulls are reassessing their positions, with technical indicators suggesting a potential cooling-off period.

The Relative Strength Index (RSI) remains in overbought territory but has started to decline slightly, hinting at fading upside pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) continues to print rising green bars, reflecting sustained buying interest, though at a moderating pace. Given this setup, further gains may be capped in the short term unless fresh catalysts emerge.

On the support side, the key level to watch is the 200-day Simple Moving Average (SMA) at 1.0780, which may act as a floor for price action. A decisive drop below this level could see the pair correcting toward 1.0750. On the upside, immediate resistance is seen around the 1.0850 zone, with stronger hurdles near 1.0900.

EUR/USD daily chart