EUR/USD – Bulls regain control and aim for a retest of key resistance levels

EUR/USD regained traction on Wednesday after experiencing wide swings without clear direction over the past two days.

The fresh strength aims for a retest of pivotal barriers at 1.0768/71 (55 DMA / daily cloud base), which capped Monday’s attempt.

Technical studies are mixed on the daily chart (rising bullish momentum, conflicting MAs, and price weighed by a thickening daily cloud).

Mixed PMI data from the EU and Germany had little impact on the pair, with the US ADP report and PMI data due later today expected to provide clearer signals.

Watch the reaction at the cloud base; repeated failure here could indicate that bulls are losing momentum and the downside remains vulnerable.

However, a close below the daily Tenkan-sen (1.0721) and filling Monday’s gap would signal that bears have regained control, targeting a retest of the 1.0666 base and possible acceleration towards 1.0601 (2024 low).

Alternatively, penetration of the daily cloud would generate an initial bullish signal, with further confirmation needed on a break above the daily Kijun-sen (1.0791) and the daily cloud top (1.0808).

Res: 1.0764; 1.0771; 1.0791; 1.0808
Sup: 1.0736; 1.0721; 1.0700; 1.0666