EURUSD defends the first weekly gain in three around the 20-year low during early Monday. The recovery also gains support from the RSI and the MACD. However, an downward sloping resistance line from September 12, around 0.9830 by the press time, challenges the immediate upside moves. In a case where the quote rises past 0.9830, the 200-SMA and the 61.8% Fibonacci retracement level of the pair’s August-September downturn, respectively near 0.9950 and 1.0050, could challenge the bulls. It’s worth noting that a two-month-old downward sloping trend line around 1.0090, quickly followed by the 1.0100 threshold, appears the defense of the pair sellers.
Alternatively, the 50-SMA and the 23.6% Fibonacci retracement level, close to 0.9740 and 0.9730 in that order, could test the EURUSD pair’s pullback. Following that, the 0.9640 and the 0.9580 levels might poke the bears before giving them control. In that case, the latest trough surrounding 0.9540 should act as a buffer before highlighting the September 2001 peak near 0.9330.
Overall, the EURUSD rebound is likely to extend for a while as traders await the key data from the US. However, the bearish trend isn’t challenged yet.