EUR/USD trims losses and rises toward 1.0750

The US dollar lost strength during the American session and trimmed gains across the board. EUR/USD moved off daily lows. The pair is still headed toward a daily decline but it was able to hold above key short-term technical levels. 

Earlier the euro bottomed at 1.0705 and then bounced to the upside. Recently it reached 1.0744 and it was trading at 1.0740, 40 pips below Friday’s closing price. 

EUR/USD technical outlook 

“The pair bounced was mostly technical, given that the pair has the 38.2% retracement of the November/January slide around it, while in the daily chart a bullish 20 DMA converges with a bearish 100 DMA around the level. The tepid posterior recovery, however, maintains the risk towards the downside for the upcoming sessions”, said Valeria Bednarik, Chief Analysts at FXStreet. 

According to her, in the 4-hour chart, indicators have lost their bearish strength, but remain within negative territory, supporting a downward extension on a breakout of the 1.0700/10 support area. “A recovery beyond 1.0770 on the other hand, will favor another attempt of breaking beyond the 1.0800/40 price zone.”