EUR/USD Price Analysis: Pair rises to 1.0585 after bouncing from 20-day SMA
- EUR/USD gains mildly on Monday, trading at 1.0585 after rebounding from the 20-day SMA.
- Pair maintains its position above the 20-day SMA, supporting a constructive short-term outlook.
- RSI points upward but remains below 50, while MACD prints rising green bars, signaling gradual bullish momentum.
The EUR/USD pair is showing mild gains on Monday, climbing to 1.0585 after finding support at the 20-day Simple Moving Average (SMA). This rebound reinforces the importance of the 20-day SMA as a key level, with the pair maintaining a slightly positive short-term outlook.
Technical indicators suggest improving momentum. The Relative Strength Index (RSI) is pointing upward but remains below the neutral 50 mark, indicating a cautious recovery. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator continues to print rising green bars, highlighting building bullish momentum, though a decisive breakout remains elusive.
To extend the recovery, EUR/USD needs to clear resistance at 1.0600, which would confirm further upside potential. On the downside, the 20-day SMA near 1.0550 serves as a crucial support level. A break below this could see the pair revisiting 1.0530 and, subsequently, the psychological 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.
