The EUR/USD currency pair witnessed a slight rebound towards the end of the week. On Friday, it managed to gain ground and settled close to 1.0395. This came after a steep decline on Wednesday, during which it dropped by more than 1%.
The pair’s performance was closely watched through various technical indicators. The Relative Strength Index (RSI) saw a sharp increase, reaching 37. However, it still remains in the negative territory, which implies that the recovery attempts have been rather hesitant. It does, though, suggest a gradual lessening of the bearish momentum.
The Moving Average Convergence Divergence (MACD) histogram is printing flat red bars. This indicates that there is still persistent bearish pressure in the market, even though there are some signs that the situation might be stabilizing to an extent.
Moreover, despite the end-of-week improvement that saw the pair add 0.28% on Friday, it continues to stay below the 20-day Simple Moving Average (SMA). This SMA acts as a significant hurdle, capping the upside potential and leading to a cautious sentiment among market watchers. Overall, technical indicators point to the fact that while the selling pressure might be easing up a bit, the general bias for the EUR/USD pair remains tilted towards the downside.
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