EUR/USD breaks key averages - deeper correction ahead?

EUR/USD has broken below critical moving averages, declining 0.4% to 1.0780 as technical selling pressure intensifies. The pair has breached both the 50-day and 200-day moving averages, triggering algorithmic selling and stop-loss orders. This technical breakdown follows recent ECB dovish signals and stronger US economic data that reduced expectations for aggressive Fed rate cuts in 2025. The dollar index strengthened to 104.20, adding downward pressure on the euro. Technical indicators show oversold conditions developing, with RSI approaching 30. Immediate support lies at 1.0750 (January low), while resistance has formed at 1.0820 (former 200-day MA). A sustained break below 1.0750 could accelerate losses toward 1.0700, while any recovery attempts will likely face selling pressure near the broken moving averages. Traders should monitor upcoming Eurozone inflation data for potential catalysts.