• EUR/USD finally reverses the recent weakness and regains 1.1350.
• Immediately to the upside comes the 10-day SMA (1.1454).

EUR/USD manages to bounce off Wednesday’s new 2021 lows in the 1.1260 region.

Oversold conditions of the pair seem to have prompted the rebound in spot to levels back above the 1.1300 barrier. The continuation of the recovery could still have some legs to go with the next interim hurdle at the 10-day SMA at 1.1445 ahead of the 20-day SMA at 1.1524. Further up comes the weekly low at 1.1609 (November 9).

In the meantime, extra losses remain on the cards as long as the pair trades below the immediate resistance line (off September’s high) today just above 1.1600. In the longer run, the negative outlook persists while below the 200-day SMA, today at 1.1861.

EUR/USD daily chart