EUR/USD Price Analysis: Back above 50-hour MA, needs to keep gains to weaken bearish outlook
- EUR/USD has bounced to levels above the 50-hour average.
- Failure to keep gains above the average could prove costly.
EUR/USD has moved back above the 50-hour moving average (MA). The pair is currently trading at 1.0810 and the average is located at 1.0808.
Throughout the recent decline from 1.1095, the pair has charted bearish lower highs just above the 50-hour MA.
Hence, the latest break above the average is an acid test of sorts for the bulls. If they manage to build on the breakout above the hourly average, the immediate bearish technical bias would be neutralized.
That will likely cause some sellers to exit the market, leading to a stronger corrective bounce to 1.0850.
Alternatively, a drop to fresh multi-year lows below 1.0782 could be seen if the bulls again fail to keep gains above the 50-hour MA.