EUR/USD Price Analysis: Bulls reclaim ground after bouncing off key support

EUR/USD rises to 1.0440 on Thursday, reversing losses after a three-day decline.
The pair rebounded strongly off the 20-day SMA, gaining over 0.40% of its intra-week drop.
Momentum indicators show signs of stabilization, with RSI rising sharply and MACD flattening in positive territory.

Patricio Martín FXStreet

After a sharp three-day decline that saw EUR/USD shed more than 0.50% of its value following last week’s rally, bulls regained control on Thursday. The pair climbed to 1.0440, marking a 0.40% gain as buyers defended the 20-day Simple Moving Average (SMA), which acted as a key technical floor.

Momentum indicators hint at a shift in sentiment. The Relative Strength Index (RSI) has turned higher, now at 57, signaling renewed upside momentum after dipping earlier in the week. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat but holds in green territory, suggesting that bearish momentum has stalled.

Looking ahead, the pair’s ability to hold above the 20-day SMA will be crucial for sustaining a broader recovery. If buyers maintain control, the next key resistance lies near 1.0500, where stronger selling pressure could emerge. On the downside, a break below 1.0420 would invalidate the latest rebound and expose EUR/USD to further losses toward 1.0380.

EUR/USD daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.