EUR/USD extends its decline for a second straight session on Monday, pressured by a modestly stronger US Dollar as expectations fade for another Federal Reserve rate cut. The pair pulls back from last Thursday’s two-week high, with sellers eyeing a clear break below 1.1600 to confirm deeper downside potential.

Technically, last week’s rejection at the 50-day SMA and the subsequent drop favor the bearish outlook. Still, neutral daily chart oscillators call for caution, especially with the market increasingly pricing in the European Central Bank holding rates steady through next year—offering some support for the Euro.

Initial buying interest is expected near 1.1575–1.1570. A decisive break below this zone could trigger further selling, exposing 1.1500 and later 1.1470–1.1465, the lowest range since early August.

On the upside, the 50-day SMA around 1.1660–1.1665 remains the first key hurdle. A sustained move above 1.1700 and then 1.1725–1.1730 would open the door for gains toward 1.1755–1.1760 and potentially the 1.1800–1.1820 resistance band.