EUR/USD Price Analysis: Pair recovers slightly, still below 20-day SMA

EUR/USD edges higher on Friday, settling at 1.0495 as it approaches the 20-day SMA.
RSI rises sharply to 44 but remains in negative territory, indicating improving momentum within a bearish context.

Patricio Martín FXStreet

The EUR/USD pair managed a modest rebound on Friday, rising by 0.2% to 1.0495 after testing fresh lows earlier in the week. The pair inched closer to the 20-day Simple Moving Average (SMA) near 1.0550 but failed to breach it, keeping the short-term outlook tilted to the downside.

Technical indicators show signs of stabilization but remain broadly bearish. The Relative Strength Index (RSI) has risen sharply to 44, reflecting improving momentum, though it stays in negative territory, indicating the recovery lacks robust follow-through. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram continues to print decreasing green bars, signaling persistent bearish pressure despite the daily gains.

For the bulls to regain control, EUR/USD must decisively reclaim the 20-day SMA, currently near 1.0550, to shift the outlook to neutral or positive. Until then, the bearish bias remains intact, with immediate support at the psychological 1.0500 level, followed by 1.0480. Failure to hold above these levels could accelerate the downside.

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD corrects lower, returns to 1.1650

EUR/USD could not sustain an earlier move to fresh tops just above 1.1680 on Thursday, coming under fresh selling pressure and revisiting the mid-1.1600s in the latter part of the NA session. The pair’s correction comes in response to an acceptable bounce in the US Dollar.

GBP/USD attempts some consolidation near 1.3350

GBP/USD is alternating gains with losses near 1.3350 on Thursday. The Greenback’s attempts to recover aren't really sticking, upbeat data or not, as traders stay confident that the Fed will deliver a 25 bps rate cut at its final meeting of the year.

Gold flat lines near $4,200 ahead of US PCE inflation release

Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures Price Index report for September, which will be published later on Friday.

XRP slides amid record on-chain activity, mixed technical signals

Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.

Why the Fed may cut rates in December: Understanding the policy shift

The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.

XRP edges lower despite record on-chain activity and steady ETF inflows

Ripple is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.