EUR/USD Price Analysis: Pair retreats to 1.0550 after testing 1.0600
- EUR/USD gives up gains on Friday, settling near 1.0550 after reaching 1.0600.
- Pair remains above the 20-day SMA, keeping the short-term outlook slightly positive.
- RSI stays flat in negative territory, while MACD shows rising green bars, hinting at bullish momentum.
The EUR/USD pair retreated on Friday after briefly testing highs around 1.0600, ending the session near 1.0550 but still holding above the 20-day Simple Moving Average (SMA). This level continues to provide critical support, suggesting that the short-term outlook remains somewhat constructive despite Friday's pullback.
Technical indicators present mixed signals. The Relative Strength Index (RSI) remains points in negative territory, reflecting caution among traders. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator prints rising green bars, signaling gradual bullish momentum. However, the lack of a decisive move higher underscores lingering risks for the pair.
On the upside, the pair faces immediate resistance at 1.0580, with a clear break above the 1.0600 psychological level needed to confirm further gains. On the downside, a sustained move below 1.0550 could open the door to retest support at 1.0530 and potentially revisit the critical 1.0500 level.
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.
