EURUSD licks its wounds around a two-year low during a cautiously optimistic Asian session on Wednesday. In doing so, the major currency pair takes a U-turn from the 61.8% Fibonacci Expansion (FE) of February-April moves. However, a downward sloping trend line from March 31 challenges the quote’s corrective pullback near 1.0830 ahead of a broad resistance zone surrounding 1.0930-60 comprising 200-SMA and multiple levels marked in the last one month. Even if the quote manages to cross the 1.0960 hurdle, a 10-week-old descending resistance line near 1.1075 will be crucial for buyers to watch.
On the contrary, the 61.8% FE level near 1.0750 restricts the immediate downside of the EURUSD pair ahead of April 2020 lows near 1.0730-25. Should the quote drop below 1.0730, the 1.0700 round figure and March 2020 bottom surrounding 1.0635 will lure the pair bears. It’s worth noting, however, that the RSI conditions aren’t supporting a no-break south-run and hence intermediate pullbacks can’t be ruled out.
Overall, the EURUSD rebound remains elusive until crossing the 1.1075 level.