- EUR/USD gains slightly on Monday, trading at 1.0585 after bouncing from the 20-day SMA.
- The pair maintains its position above the 20-day SMA, supporting a constructive near-term outlook.
- The RSI is pointing up but remains below 50, while the MACD prints ascending green bars, signaling gradual bullish momentum.
The EUR/USD pair shows slight gains on Monday, rising to 1.0585 after finding support at the 20-day SMA. This bounce reinforces the importance of the 20-day SMA as a key level, with the pair maintaining a slightly positive near-term outlook.
Technical indicators suggest improving momentum. The Relative Strength Index (RSI) is pointing up but remains below the neutral 50 mark, indicating a cautious recovery. Meanwhile, the Moving Average Convergence/Divergence (MACD) indicator continues to print ascending green bars, highlighting a building bullish momentum, although a decisive breakout remains elusive.
To extend the recovery, EUR/USD needs to overcome the resistance at 1.0600, which would confirm further upside potential. On the downside, the 20-day SMA near 1.0550 serves as a crucial support level. A break below this level could lead the pair to revisit 1.0530 and subsequently the psychological level of 1.0500.
EUR/USD Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
