EUR/USD extends rebound from lows
James Chen April 24, 2015 7:27 PM
<p>EUR/USD (daily chart shown below) has extended its recent rebound from long-term lows by pushing tentatively above both its 50-day moving average and the 1.0800 […]</p>
EUR/USD (daily chart shown below) has extended its recent rebound from long-term lows by pushing tentatively above both its 50-day moving average and the 1.0800 resistance area on Friday.
This rise for the currency pair occurs on a pullback of the US dollar against most major currencies after a long period of increasing dollar strength.
The most recent low for EUR/USD that reflected this dollar strength occurred early last week, when the currency pair bottomed out around 1.0520, just short of reaching the expected 1.0500 bearish target. That low also missed the 12-year low of 1.0461 that was established last month.
While the strong downtrend that goes back almost a year to the May 2014 high near 1.4000 continues to be intact, the current rebound that has tentatively moved above the 50-day moving average provides some indication of a potential interruption of bearish momentum.
Any further extension of the current rebound should find major resistance around the key 1.1100 level. To the downside, any turn back down to resume EUR/USD’s bearish stance should once again target the 1.0500 support objective, followed by a potential downtrend continuation towards 1.0200.
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