The EUR/USD currency pair saw a slight recovery near 1.0735 in early Friday trading, consolidating its weekly losses and reaching its lowest levels since late March.
During this bounce, the major currency pair experienced its first daily gains in four days as it found support from a rising trend line that has been intact for the past six months.
While the oversold RSI (14) indicator lends support to the corrective rebound of EUR/USD, bearish signals from the MACD and a descending resistance line since early May, positioned around 1.0765, present a challenge for buyers.
Even if buyers manage to overcome the hurdle at 1.0765, the 100-day Exponential Moving Average (EMA) around 1.0780 acts as a final defense for bears, redirecting the pair towards the mid-month peak near 1.0900.
It should be noted that the overall bearish sentiment persists for EUR/USD until it surpasses the psychological level at 1.1000.
On the downside, the aforementioned support line and the 200-day EMA, located near 1.0710 and 1.0685 respectively, provide resistance against short-term declines for EUR/USD.
Furthermore, a potential decline towards the yearly low reached in March around 1.0515 cannot be ruled out.
In summary, despite the recent corrective bounce, EUR/USD remains on the radar for bearish movements.
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