30-mins EUR/USD: The EUR is picking up on the short term After finding robust support near the 1.0520 level, the EUR/USD pair has begun to show signs of recovery, gaining modest momentum in the short term. This upward movement has been bolstered by an increase in buying activity, as evidenced by a technical indicator known as the Golden Cross. This classic bullish signal occurs when the 20-period moving average (MA) crosses above the 60-period moving average, suggesting the potential for continued upside in the pair’s performance.
In recent trading hours, however, the EUR/USD has experienced a minor pullback, retracing part of its gains and finding local support around the 1.0574 level, which aligns with the 38% Fibonacci retracement. This technical level has temporarily halted the decline, indicating some stabilization in the price action. Despite this, the possibility of a deeper correction cannot be ruled out. Market conditions could lead to further downward pressure, potentially testing the 50% Fibonacci retracement near the 1.0560 area or slightly below.
Such a move would likely attract more buyers, as a deeper correction would create a more attractive entry point with an improved risk-to-reward ratio. This scenario could set the stage for a more significant rally, with the EUR/USD poised to climb higher once the current consolidation phase concludes and buyers capitalize on the relatively undervalued price.
