Maintaining above the psychological level of 1.0600 amid bearish sentiment.

• EUR/USD may test support at the psychological level of 1.0600.
• The pair may extend losses towards the November low of 1.0516 as technical analysis suggests confirmation of weakness.
• The area around the key level of 1.0650 and the 23.6% Fibo level of 1.0672 appear to be areas of resistance.

EUR/USD continued its six-session losing streak on Tuesday, hovering around 1.0620 during Asian trading hours. The strength of the US dollar (USD) is putting pressure on the EUR/USD pair due to rising US Treasury yields. Additionally, stronger-than-expected US retail sales indicators have raised expectations that the Federal Reserve (Fed) may extend its interest rate hike policy.

On the technical side, bearish sentiment is suggested for the EUR/USD pair as the 14-day Relative Strength Index (RSI) is below the 50 line. Additionally, the lagging indicator MACD (Moving Average Convergence Divergence) is below the center line and shows a divergence below the signal line, which indicates weakness in the currency pair.

The EUR/USD pair may find immediate support near the psychological level of 1.0600. A break below this level could put downward pressure on the pair and allow it to explore around the key level of 1.0550 and move towards the November low of 1.0516.

On the upside, the key level of 1.0650 appears to be the main barrier, followed by the 23.6% Fibonacci retracement level of 1.0672. A break above the latter may force the EUR/USD pair to explore around the psychological level of 1.0700 and the 9-day exponential moving average (EMA) of 1.0715.

EUR/USD: daily chart