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EURUSD attempts to rebound off 1.0875
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Gets rejected at 1.0900 but 200-day SMA provides support
EURUSD has found strong support near the 200-day simple moving average (SMA) and the medium-term uptrend line over the last couple of days. The market is currently slightly below the 1.0900 psychological number and needs some more boost to extend its bullish structure.
In terms of technical oscillators, the RSI is flattening below the neutral threshold of 50, while the MACD is losing momentum beneath its trigger line and near the zero level. Both are mirroring the weak movement in price.
Should the price continue to bounce off its 200-day SMA and storm back higher, immediate resistance could be found at the 20-day SMA at 1.0960 ahead of the 1.1000 round number. Piercing though that wall, the pair might challenge the previous peak of 1.1140.
On the flipside, if the bullish pressure wanes, the pair could extend its latest retreat towards the 200-day SMA again at 1.0840. A break below that zone may pave the way for the 1.0725 support.
Overall, EURUSD’s attempts for a solid rebound is still successful but for how long? A drop below the uptrend line could switch the outlook to bearish.
