• EUR/USD manages to finally reverse the downtrend.
• Further downside could see the 2022 low retested.

EUR/USD posts a moderate rebound after bottoming out in fresh lows near the 1.0860 region on Thursday.

That said, immediately to the upside comes the temporary resistance at the 55-day SMA, today at 1.1156 ahead of the 1.1230 region, where the 100-day SMA and the 8-month line coincide. Beyond this area, the selling bias is expected to subside and allow for extra gains in the short-term horizon.

The ongoing recovery is seen as temporary, leaving the prospects for further downwide well in place for the time being. Against that, there is still the probability that the pair could drop further and test the 2022 low at 1.0805 (March 7) in the not-so-distant future.

The medium-term negative outlook for EUR/USD is expected to remain unchanged while below the key 200-day SMA, today at 1.1465

EUR/USD daily chart