- On Friday, the EUR/USD rate increases, settling at 1.0495 and approaching the 20-day SMA.
- The RSI rises sharply to 44 but remains in negative territory, indicating improving momentum in a bearish context.
The EUR/USD pair saw a slight rebound on Friday, rising 0.2% to 1.0495 after testing recent lows earlier in the week. The pair approached the 20-day straightforward moving average (SMA) near 1.0550 but failed to break above it, keeping the near-term outlook tilted to the downside.
Technical indicators are showing signs of stabilization but remain broadly bearish. The Relative Strength Index (RSI) rose sharply to 44, reflecting improved momentum, although it remains in negative territory, indicating that the recovery is not having solid implications. Meanwhile, the moving average divergence (MACD) histogram continues to display descending green bars, signaling continued bearish pressure despite daily gains.
For the bulls to regain control, EUR/USD must decisively reclaim the 20-day SMA, currently near 1.0550, to change the outlook to neutral or positive. Until then, the bearish bias will remain unchanged, with immediate support at the psychological level of 1.0500 and then 1.0480. Failure to stay above these levels could accelerate declines.
