• The escalated risk-off profile has weakened the shared currency bulls.
• A death cross, represented by the 50-and 200-EMAs, adds to the downside filters.
• The RSI (14) has slipped into the bearish range after failing to sustain at no man’s land.

The EUR/USD pair has established below the critical cushion of 0.9700 in the early European session as the dismal market mood has firmed up further. The 10-year US Treasury yields are hovering around the psychological resistance of 4% and are aiming to cross the same with sheer momentum. Apart from that, the US dollar index (DXY) has refreshed its weekly high at 113.40.

On an hourly scale, the asset has delivered a downside break of the rangebound structure formed in a 0.9678-0.9745 range. Earlier, the asset sensed severe selling pressure from the parity after failing to cross the balanced profile placed in a 0.9974-1.0050 range.

The death cross of the 50-and 200-period Exponential Moving Averages (EMAs) at 0.9830 favors a downside bias.

In addition to that, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00 after failing to sustain in the 40.00-60.00 range.

Going forward, a slippage below Monday’s low at 0.9670 will drag the asset toward the two-decade low at 0.9537. A slippage below the latter will drag the pair toward the round-level support at 0.9500.

On the contrary, an upside break of the 50-EMA around 0.9750 will drive the asset towards Friday’s high at 0.9817, followed by Thursday’s high at 0.9962.

EUR/USD hourly chart