• EUR/USD rebounds markedly past the 1.0400 mark.
• The 5-month line near 1.0630 caps the upside so far.

EUR/USD extends the bounce off last week’s lows in the 1.0385/80 band on Monday.

The inability of the pair to leave behind the 5-month line near 1.0630 on a convincing fashion should keep the downside pressure well in place around the pair for the time being. That said, there is a minor support at the weekly low at 1.0365 (July 1) ahead of the June low at 1.0358 (June 15). A deeper pullback should put a visit to the 2022 low at 1.0348 (May 13) back on the radar.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.1099.

EUR/USD daily chart