EUR/USD is showing signs of recovery, pushing toward the 1.0440 resistance level after facing a strong selloff. The pair remains under pressure, but recent price action suggests buyers are attempting to regain control.
Technical Analysis
📈 Weighted Moving Averages Indicate Cautious Optimism
The 50 Weighted Moving Average (WMA) at 1.04 is below the 200 WMA at 1.05, reinforcing a broader bearish trend. However, the recent rebound suggests an attempt to challenge resistance and shift momentum.
📊 RSI Shows Improving Sentiment
The Relative Strength Index (RSI) is at 54, reflecting a steady recovery from oversold conditions. If RSI moves above 60, it could indicate further bullish momentum.
🔎 Key Price Levels Define the Next Move
EUR/USD is hovering near 1.0440, a critical resistance zone. A breakout above this level could lead to a test of 1.05, while failure to hold gains may trigger a pullback toward 1.04.
Key Levels to Watch
Support Levels:
- 1.0400: Short-term support where buyers recently stepped in.
- 1.0350: Stronger support level if selling pressure returns.
Resistance Levels:
- 1.0440: Immediate barrier for further upside.
- 1.0500: Major resistance aligning with the 200 WMA.
Fundamental Drivers
EUR/USD’s movement is influenced by shifting central bank expectations and US economic data. The euro remains under pressure due to concerns about economic growth in the Eurozone, while the US dollar has benefited from stronger demand amid risk-off sentiment. This week’s key releases, including US GDP data and Eurozone inflation figures, will be crucial in determining the pair’s next direction.
Outlook
The 1.0440 resistance level stands as a major hurdle for EUR/USD. A breakout could fuel further gains toward 1.0500, while failure to push higher might see renewed selling pressure toward 1.0400 or lower.
Market participants should closely follow price action and upcoming macroeconomic events to assess the sustainability of this recovery.
