- EUR/USD picks up bids to rebound from two-month low, snaps three-day losing streak.
- Ascending trend line from November 2022, 200-day EMA challenges Euro bears amid downbeat RSI (14).
- Buyers need validation from 100-day EMA, three-week-old resistance line guards immediate recovery.
EUR/USD consolidated weekly losses at the lowest levels since late March, mildly bid near 1.0735 during early Friday morning in Europe.
In doing so, the major currency pair prints the first daily gains in four while bouncing off a six-month-long rising trend line.
That said, the recently oversold RSI (14) line adds strength to the EUR/USD pair’s corrective bounce. However, bearish MACD signals and a downward-sloping resistance line from early May, close to 1.0765 at the latest, challenge the Euro pair buyers.
Even if the EUR/USD buyers manage to cross the 1.0765 hurdle, the 100-day Exponential Moving Average (EMA) of around 1.0780 can act as the last defense of the EUR/USD bears before directing it to the mid-month peak surrounding 1.0900.
It should be noted that the EUR/USD remains bearish unless crossing the 1.1000 psychological magnet.
On the flip side, the aforementioned support line and the 200-day EMA, respectively near 1.0710 and 1.0685, restrict the short-term EUR/USD downside.
Following that a slump towards the yearly low marked in March around 1.0515 can’t be ruled out.
Overall, EUR/USD remains on the bear’s radar despite the latest corrective bounce.
EUR/USD: Daily chart
Trend: Bearish
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