Market Analysis on EUR/USD

EUR / USD retreated on Thursday, but after “hitting” support at 1.0625 (S2), it rebounded to break above 1.0735 (S1) and to “hit” resistance slightly above the 1.0800 (R1) barrier.

As long as the rate is trading within a short-term upward channel, the trend remains upward, in my opinion. This is also supported by our short-term oscillators. The RSI rebounded close to its 50 line, while the MACD, already above its trigger line, got a positive signal. However, given our proximity to the upper limit and a possible ascending channel, I would be alert to how a setback may be imminent. In the broader picture, EUR / USD is still trading below the 50- and 200-day moving averages.

Therefore, I would treat any possible short-term advances as corrective movements in the broader trajectory. A clear close below 1.0460 will confirm a lower future low and trigger the wider downward trend.

• Support: 1.0735 (S1), 1.0625 (S2), 1.0575 (S3).

• Resistance: 1.0800 (R1), 1.0890 (R2), 1.0965 (R3).