EUR/USD Technical Analysis: The 21-day SMA at 1.1550 continues to hold ahead of the 1.1630 region

• Spot is extending the up move for the fifth session in a row today, quickly leaving behind the 1.14 and 1.15 handles amidst a robust bounce off last week’s YTD lows in sub-1.1300 levels. The up move has been so far contained around 1.1540, hourly highs.
• EUR/USD is moving higher on the back of a sharp drop in the greenback, all in response to Trump’s attack to the Fed’s tightening cycle.
• The ongoing rebound is still seen as corrective only, although it could extend to the former tops in the 1.1630 region, recorded earlier in the month.
• Looking at the broader scenario, the prospect of the pair remains bearish as long as the 1.1745/50 band caps. Should the downside pressure returns to the markets, the 200-week SMA, today at 1.1355 should emerge as the initial support ahead of 1.1299, recent YTD lows.

EUR/USD hourly chart

Daily high: 1.1542

Daily low: 1.1480

Support Levels

S1: 1.1422

S2: 1.1363

S3: 1.1331

Resistance Levels

R1: 1.1513

R2: 1.1545

R3: 1.1604