EUR/USD bearish reversal accelerates below 1.0800 as dollar strengthens

EUR/USD has posted a decisive bearish reversal, breaking below the psychological 1.0800 level to trade at 1.0785, down 0.6% (65 pips) in European trading. The pair's failure to sustain last week's rally above 1.0850 has triggered technical selling, with momentum indicators turning negative. EUR/USD futures show increased short positioning as the US dollar decline narrative loses credibility amid resilient US economic data. The 200-day moving average at 1.0820 now acts as resistance, while immediate support lies at 1.0760. Volume analysis indicates heavy selling pressure, with the reversal pattern suggesting potential continuation toward 1.0700. European Central Bank officials remain cautious about growth prospects, providing little support for the euro. Traders are positioning for further dollar strength unless upcoming US data significantly disappoints expectations.