- EUR/USD rebounds to 1.0688 on US Dollar weakness on Thursday.
- The bearish outlook for the pair remains intact below the key 100 period EMA.
- The first bullish target is seen at 1.0700; the initial support level is located at 1.0622.
EUR/USD extends its recovery near 1.0688 on Thursday during early European trading hours. The pair's rebound is supported by selling pressure on the US Dollar Index (DXY) at 105.78. However, the pair's upside could be limited as the market expects the European Central Bank to cut interest rates in June, weighing on the Euro (EUR) against the Dollar.
From a technical point of view, EUR/USD maintains the bearish trend on the four-hour chart as the pair is below the 100-period exponential moving average (EMA). However, the Relative Strength Index (RSI) is in bullish territory around 55, suggesting that further rises cannot be ruled out.
The first bullish barrier for the pair will emerge near the 50 EMA and the round figure at 1.0700. Another bullish filter to watch is the 100 EMA at 1.0745. Further north, the next hurdle lies near the March 22 low and the psychological level of 1.0800, on the way to the April 9 high at 1.0885.
On the opposite side, the initial support level for the pair lies near an April 12 low at 1.0622. The next containment level to watch is the 1.0595-1.0600 area, which indicates the lower boundary of the Bollinger Bands and the round mark. Any selling below this last level will pave the way towards the November 2 low at 1.0565.
EUR/USD four-hour chart
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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.
