Another rise seems elusive as it is below 1.1930
- The EUR / USD rebound pauses around the key Fibonacci retracement.
- The decrease in the downward bias of the MACD, the improvement in the risk sentiment in favor of the bulls.
- Sellers are waiting for a clear break from three-month-old support for new entries.
EUR / USD has softened the rally since early April towards 1.1920 during Tuesday’s first Asian session. Bouncing off a two-month low, the major currency pair ended a three-day losing streak and also recorded the biggest gains since late May the previous day.
The rebound combats the 61.8% Fibonacci retracement of the March-May rise amid a declining bearish bias in MACD signals.
Therefore, the quote may extend the latest rise, but bulls wait for a clear break of 1.1930 before targeting mid-April lows around 1.1940-45.
It should be noted, however, that the 50% Fibonacci retracement, the March high, and the 200-day SMA together offer a difficult issue for EUR / USD buyers towards 1.1990-2000.
Meanwhile, pullbacks may initially target the 1.1900 threshold before aiming for 1.1875 and the horizontal line around 1.1845.
However, a sharp decline beyond 1.1845 might not hesitate to challenge the supports at 1.1800 and 1.1760 before leading EUR / USD declines to the annual low near the 1 figure, 1700 round.
EUR / USD daily chart
Trend: continuation of the expected recovery