• EUR/USD reverses three daily gains in a row on Monday.
• There is an initial resistance at the 7-month line near 1.0160.

EUR/USD comes under some selling pressure and deflates below the parity region at the beginning of the week.

The pair seems to have embarked on a consolidative range ahead of the key FOMC event on Wednesday. Immediately to the upside comes the interim 55-day SMA at 1.0101 ahead of the key 7-month resistance line, today near 1.0160. A move beyond the latter is needed to mitigate the downside pressure and allow spot to confront the September high at 1.0197 (September 12) ahead of potential extra gains.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0722.

EUR/USD daily chart