- EUR/USD rises on Friday and settles at 1.0495 as it approaches the 20-day SMA.
- The RSI rises sharply to 44 but remains in negative territory, indicating improving momentum within a bearish context.
The EUR/USD pair managed a modest rebound on Friday, rising 0.2% to 1.0495 after testing new lows earlier in the week. The pair inched closer to the 20-day 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 generally bearish. The Relative Strength Index (RSI) has risen sharply to 44, reflecting improving momentum, although it remains in negative territory, indicating that the recovery lacks solid follow-through. Meanwhile, the moving average convergence divergence (MACD) histogram continues to print decreasing green bars, indicating persistent 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 remains intact, with immediate support at the psychological level of 1.0500, followed by 1.0480. Failure to stay above these levels could accelerate the decline.
EUR/USD Daily Chart
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