- The pair recorded modest gains of 0.20% and settled at 1.0530.
- The target of buyers remains the 20-day SMA.
- Until the SMA recovers in the short term, the outlook will be bearish.
The EUR/USD pair found support around the psychological level of 1.0500 after opening the week with a sharp drop of more than 1% and racking up a two-day winning streak. On Wednesday, the pair saw a modest bounce, rising to 1.0530 as buyers stepped in, although the technical picture remains bearish.
Despite this recovery, the pair remains below the 20-day SMA, which continues to act as a strong resistance level. Indicators have gained some ground but remain in negative territory, reflecting persistent downside risks. The Relative Strength Index (RSI) has risen to 42 but still signals bearish momentum, while the MACD histogram shows slightly improved momentum, but both indicators are not giving clear signs that a sustained reversal has materialized.
For now, traders will focus on whether the pair can build on this bounce and reclaim the 20-day SMA. If the bullish momentum fades, the pair remains at risk of retesting the support levels at 1.0500 and 1.0450, while resistance near 1.0550 could limit further upside in the near term.
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.
