EUR/USD Dips Slightly After Wednesday’s Rally, Eyes Key Resistance
EUR/USD eased in early Thursday trading, slipping modestly after Wednesday’s robust 0.8% gain, but the dip remained supported by the broken 10-day moving average (1.0524), which has now turned into a support level.
Near-Term Outlook and Key Levels
- The pair is expected to maintain a bullish bias as long as it stays above the 10DMA, keeping alive the potential for further upside following Wednesday’s advance.
- A marginal close above the pivotal 1.0563 Fibonacci resistance (38.2% retracement of the 1.0936–1.0332 decline) has reinforced recovery prospects. A sustained break here would generate fresh bullish momentum and open the door to further gains.
- However, caution is warranted as bearish indicators persist:
- The 14-day momentum remains negative despite pointing upward.
- The imminent death cross formation between the 55DMA and 200DMA signals underlying bearish pressure.
Key Risks and Alternative Scenarios
Repeated failures at 1.0563 could signal that the recovery is faltering. A dip and close below the 10DMA would weaken the near-term structure, potentially dragging the pair toward 1.0475 (broken 23.6% Fibonacci retracement) and reactivating the bearish outlook.
Market Drivers
Today’s release of German November inflation data will be closely monitored for fresh directional signals.
Expect lighter trading volumes during the U.S. session due to the Thanksgiving holiday, which could amplify volatility.
Res: 1.0587; 1.0609; 1.0634; 1.0691
Sup: 1.0525; 1.0500; 1.0475; 1.0424
