- EUR/USD's 100-hour SMA restricted losses during the overnight trade.
- A break above 1.144 is needed to weaken the immediate bearish case.
EUR/USD has bounced up from the ascending 100-hour simple moving average (SMA) support. But the bulls are not out of the woods yet.
The sellers failed to establish a secure foothold under the 100-hour SMA during the overnight trade, allowing for a minor bounce. At press time, EUR/USD is trading at 1.1390 and the 100-hour SMA is located at 1.1380. The SMA was located at 1.1375 a few hours ago.
However, despite the recovery from the SMA support, the bias remains bearish. This is because the pair is still trading well below Thursday’s high of 1.1442.
The pair fell 0.25% on Thursday, snapping a four-day winning streak, and validating the bearish view put forward by the long upper wick attached to Wednesday’s candle. As such, a break above 1.1442 is needed to invalidate the bearish pattern. That would open the doors for 1.15.
Alternatively, acceptance under the 100-hour SMA would bolster the immediate bearish setup and will likely yield a deeper decline to 1.12.
Daily chart
Trend: Bearish
Technical levels
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