EURUSD bounces off 10-month-old support but remains bearish
EURUSD pares weekly losses ahead of the key inflation data from the Eurozone and the US. In doing so, the Euro pair rebounds from horizontal support comprising lows marked since November 2022, around 1.0485-80, as the RSI (14) takes a U-turn from the oversold territory. The same joins the looming bull cross on the MACD to direct the pair towards the nine-month-old previous support line, close to 1.0650 at the latest. However, the mid-September highs of around 1.0765-70 and the convergence of the 50-SMA and the 200-SMA, surrounding 1.0830, will act as tough nuts to crack for the buyers before retaking control.
On the contrary, the EURUSD pullback remains elusive beyond the immediate horizontal support line surrounding 1.0480. Following that, the 50% Fibonacci retracement of September 2022 to July 2023 upside of near 1.0400 will precede the late November 2022 bottom of around 1.0220 to test the Euro bears. In a case where the major currency pair remains bearish past 1.0220, the 61.8% Fibonacci ratio of around 1.0200 will act as the final defense of the pair buyers.
Overall, EURUSD remains bearish below 1.0830 but the corrective bounce may recall 1.0650 for a while on the chart.
