In the early European session, the EUR/USD pair recovers from a new weekly low recorded on Wednesday and retakes the 1.0800 level, however the upside appears to be constrained.
The development of some dip-buying at lower levels from a technical standpoint indicates that the recent bullish trend may still be far from being ended.
On the daily chart, oscillators are also still holding comfortably in positive territory and are still a long way from the overbought region.
This in turn strengthens the likelihood of a return to testing the multi-month top, which is located between 1.0870 and 1.0875.
The EUR/USD pair has the ability to go over the 1.0900 level and toward the swing high from April 2022, which is located around 1.0935. The Asian session low, however, was roughly As the 1.0740–1.0730 resistance breakpoint approaches, the region around 1.0765 now appears to provide as immediate support.
The latter should serve as a turning point; if it is convincingly violated, technical selling may ensue, making the EUR/USD pair susceptible.
Spot prices may then go below the 1.0700 level and continue to decrease into the 1.0650-1.0645 area before reaching the 1.0600 level.
The 50-day SMA, which is now at the psychological level of 1.0500, may be reached by the downward trend.