EUR/USD Price Analysis: Pair rises to 1.0585 after bouncing from 20-day SMA

  • 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

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