EUR/USD pulls back after rebound

<p>EUR/USD (daily chart shown below) has pulled back sharply after having made its most significant rebound in the past year. The rebound, which began in […]</p>

EUR/USD (daily chart shown below) has pulled back sharply after having made its most significant rebound in the past year.

The rebound, which began in mid-March, brought the currency up from its new 12-year low of 1.0461, slightly under the 1.0500 support target, to a high of 1.1051 just one week ago in late March.

That high was just below both the major 1.1100 resistance area as well as the key 50-day moving average. Coming off that high, price action in the past week has seen a sharp pullback that has given back some of the gains made during the rebound.

2015-04-01-EURUSD daily chart

 

EUR/USD continues to be weighed down within the sharp downward trajectory of the bearish trend that has been in place for the past 11 months, since the May 2014 high near 1.4000.

With the US dollar continuing to display resilient strength and the euro continuing to be pressured to the downside, the EUR/USD pair could soon target new lows.

The noted 1.0500 support level remains as the next major bearish target. Any significant price move below 1.0500 should continue the downtrend, potentially targeting the 1.0200 support level as the next key objective to the downside.

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