Traders are gradually increasing short positions on EUR/USD because the price has been settled below 1.0800. Last week, the currency pair did not generate the clear signal of the medium-term downtrend extension.

The RSI technical instrument on the 4-hour and daily charts is moving in the indicator's lower area of 30/50. It proves high market interest in the downtrend.

The H4 Alligator has changed its trajectory from downward to upward on the back of a correctional move. Up to date, the upward correction is over and the indicator has resumed its previous trajectory.

On the daily chart, we can see that the euro has been weakening bit by bit since June 2021. Since then, the euro has depreciated by 1,450 pips or 12%.

Outlook and trading tips

The market received the first sell signal for EUR/USD at the moment when the price settled below 1.0800. To reinforce selling pressure, the currency pair has to settle below 1.0740 on the 4-hour chart. In this case, the euro could decline towards 1.0636, the swing low of March 23, 2020. Until then, EUR/USD is expected to fluctuate at around 1.0800.

Complex indicator analysis provides a sell signal for the short and medium term as well as for intraday trading because the price has got stuck below 1.0800.