- EUR/USD finally manages to reverse the downtrend.
- More dips could cause the 2022 low to be retested.
The EUR/USD records a moderate rebound after bottoming out at fresh lows near the 1.0860 region on Thursday.
That said, immediately to the upside comes temporary resistance at the 55-day SMA today at 1.1156 ahead of the 1.1230 region where the 100-day SMA and 8-month line meet. Beyond this area, the sell bias is expected to ease and allow for further gains over the near term horizon.
The ongoing recovery is seen as temporary, leaving prospects for a further drop in place for now. Against that, there is still a chance that the pair could drop further and test the 2022 low at 1.0805 (March 7) in the not too distant future.
The negative medium-term outlook for EUR/USD is expected to remain unchanged while below the key 200-day SMA today at 1.1465
EUR/USD daily chart
Technical levels
Source: Fx Street
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