- EUR/USD is bouncing off its 2020 lows in the 1.0830/25 band (Friday).
- The next hurdle is the 21-day SMA, near 1.0990.
The sharp decline in the EUR/USD pair appears to have found support in the 1.0830/25 band, or the new 2020 lows recorded at the end of last week.
Extreme “oversold” conditions, as well as improving risk appetite trends, are sustaining the recovery from recent lows, although its extension and duration remains to be seen.
Meanwhile, the next temporary hurdle appears in the 1.0980 (January lows) region. This resistance zone is reinforced by the 21-day simple moving average near 1.0990
Beyond that, while below the 55-day SMA, today at 1.1069, more bearishness should remain expected. Against this background, the next support of importance is aligned at 1.0814, which is the 78.6% Fibo retracement of the 2017-2018 rally.
EUR/USD daily chart