Technical Analysis – EURUSD attempts recovery from 5-month low
April 29, 2024 8:27 am
EURUSD rebounds from a five-month bottom
But oscillators suggest that the bears retain control
EURUSD came under severe selling pressure in the aftermath of a hotter-than-expected inflation report on April 10, posting a fresh 2024 low of 1.0600. Although the pair has been regaining ground since then, the momentum indicators are still tilted to the downside.
Should the rebound resume, the recent resistance of 1.0752 could prove to be the first barrier for the price to overcome. Conquering this barricade, the bulls could attack 1.0795, a region that acted both as support and resistance throughout 2024 and overlaps with the 200-day simple moving average (SMA). A violation of that zone could set the stage for the September high of 1.0884.
Alternatively, a downside move could meet immediate support at the February low of 1.0694. Sliding beneath that floor, the price could test the recent support of 1.0673. Even lower, the five-month bottom of 1.0600 could come under scrutiny.
In brief, EURUSD has been in a recovery mode over the past few sessions, but the momentum indicators are suggesting that bears are still holding the upper hand. Hence, a break above the 200-day SMA is needed for the short-term picture to improve.
EURUSD rebounds from a five-month bottom
But oscillators suggest that the bears retain control
EURUSD came under severe selling pressure in the aftermath of a hotter-than-expected inflation report on April 10, posting a fresh 2024 low of 1.0600. Although the pair has been regaining ground since then, the momentum indicators are still tilted to the downside.
Should the rebound resume, the recent resistance of 1.0752 could prove to be the first barrier for the price to overcome. Conquering this barricade, the bulls could attack 1.0795, a region that acted both as support and resistance throughout 2024 and overlaps with the 200-day simple moving average (SMA). A violation of that zone could set the stage for the September high of 1.0884.
Alternatively, a downside move could meet immediate support at the February low of 1.0694. Sliding beneath that floor, the price could test the recent support of 1.0673. Even lower, the five-month bottom of 1.0600 could come under scrutiny.
In brief, EURUSD has been in a recovery mode over the past few sessions, but the momentum indicators are suggesting that bears are still holding the upper hand. Hence, a break above the 200-day SMA is needed for the short-term picture to improve.
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