Technical Analysis – EURUSD regains traction after mild pullback
EURUSD attempts a strong rebound from 2023 lows
Posts a fresh 3-month high before paring some gains
Momentum indicators endorse a resumption of the advance
EURUSD has been in a recovery mode following its 2023 bottom of 1.0447 on October 3. Although the pair’s rebound got rejected at a fresh three-month high of 1.0964, the bulls prevented a significant downside correction, with the short-term oscillators remaining heavily skewed to the upside.
Should buying pressures persist, the price could revisit its recent rejection region of 1.0964. Breaking above that zone, the pair might ascend towards the February peak of 1.1032. If that hurdle also fails to provide resistance, the spotlight could turn to 1.1094, which held strong three times in April.
Alternatively, bearish actions could send the price lower to test the June-July support of 1.0832. A violation of that area could set the stage for 1.0765, which served both as support and resistance in September. Failing to halt there, the pair’s decline could resume towards 1.0693 ahead of the May low of 1.0634.
In brief, despite the latest setback, EURUSD remains buoyant and on track to resume its recent recovery. However, a failure to post a fresh higher high might trigger a downside correction.
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