The EUR/USD pair found support around the psychological 1.0500 level after opening the week with a sharp decline of over 1% and tallies a two-day winning streak. On Wednesday, the pair saw a modest rebound, rising to 1.0530 as buyers stepped in, though the technical outlook remains bearish.
Despite this recovery, the pair remains below the 20-day Simple Moving Average (SMA), which continues to act as a strong resistance level. Indicators have gained some ground but remain in negative territory, reflecting lingering downside risks. The Relative Strength Index (RSI) has ticked higher to 42 but still signals bearish momentum, while the MACD histogram shows slightly improving momentum but both indicators don’t give clear signals of sustained reversal has yet to materialize.
For now, traders will focus on whether the pair can build on this rebound and regain the 20-day SMA. If bullish momentum fades, the pair remains at risk of retesting support levels at 1.0500 and 1.0450, while resistance near 1.0550 could cap further upside in the near term.