Technical Analysis: EURUSD fades bounce off 100-day SMA
Despite marking a corrective pullback from a two-month low on Friday’s mixed US employment data, EURUSD bears aren’t disappointed as the bounce fizzles on Monday. Also favoring the bears is a downward sloping trend line from January 06. It should, however, be noted that fresh selling should wait for a clear downside break of 100-day SMA, at 1.1960 now, before targeting November 2020 high around 1.1920.
Alternatively, a 50-day SMA level of 1.2145 adds to the upside filter even as EURUSD bulls manage to cross the aforementioned resistance line near 1.2100. While a successful break above 1.2145 enables the buyers to challenge the yearly top surrounding 1.2350, the late January peak close to 1.2190 filters the upside momentum. Overall, EURUSD’s recovery moves fall short of convincing the optimists.