• EUR/USD extends the upside momentum and retests 1.0350.
• Extra gains await on a break above 1.0390.

EUR/USD adds to the weekly rebound and revisits the 1.0350 region on Thursday.

The continuation of the ongoing upside looks favoured in the short term. Immediately to the upside emerges the August high at 1.0368 (August 10), an area coincident with the 55-day SMA.

The breakout of the latter should pave the way for a challenge of the 6-month resistance line around 1.0390. If the pair clears the latter, it could then accelerate the upside to, initially, the 100-day SMA at 1.0530.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0901.

EUR/USD daily chart