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EUR/USD Price Analysis: Rebound eyes the 21-day SMA at 1.0988

  • EUR/USD bounces off 2020 lows in the 1.0830/25 band (Friday).
  • The next hurdle of note emerges at the 21-day SMA near 1.0990.

The sharp pullback in EUR/USD seems to have met contention in the 1.0830/25 band, or new 2020 lows recorded at the end of last week.

Extreme “oversold” conditions as well as improved risk appetite trends are sustaining the rebound from recent lows, although its extension and duration still remains to be seen.

In the meantime, the next interim hurdle emerges at the 1.0980 region (January lows). This area of resistance is also reinforced by the 21-day SMA near 1.0990

Further out, while below the 55-day SMA, today ay 1.1069, further downside should remain well on the table. Against this backdrop, the next support of note aligns at 1.0814, the 78.6% Fibo retracement of the 2017-2018 rally.

EUR/USD daily chart

 

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