On Friday, we saw the EUR/USD tick up slightly, closing the day at 1.0495, as it nudges its way towards the 20-day Simple Moving Average (SMA). Although the RSI climbed to 44, hinting at better momentum, it hasn’t managed to escape the bearish zone just yet.
This week, the EUR/USD pair saw a modest recovery, increasing by 0.2% to settle at 1.0495, following a challenging start with fresh lows. It approached the 20-day SMA around 1.0550 but couldn’t quite break through, which keeps the short-term bearish sentiment in place.
While there’s some sign of stability in technical indicators, the overall picture remains largely bearish. The RSI’s quick rise to 44 indicates that momentum is improving, but since it’s still below the neutral mark, the recovery lacks strong confirmation. Likewise, the MACD histogram continues to show decreasing green bars, suggesting that the bearish trend is persisting despite the day’s uptick.
For those hoping for a more bullish scenario, the EUR/USD needs to convincingly surpass the 20-day SMA, hovering near 1.0550. Doing so could shift the market sentiment from negative to neutral, or even positive. Until then, the pair holds a bearish outlook, with key support levels at the psychological 1.0500 mark and then at 1.0480. If prices dip below these levels, it could lead to increased downward momentum.
Take a look at the EUR/USD daily chart for a clearer visual of these movements and potential trajectories.
