EURUSD – Attempts to Rebound Above Key Fibonacci Support and 20DMA

EURUSD edged higher on Tuesday after a four-day pullback from its multi-month peak at 1.0954, where the rally stalled just below key Fibonacci resistance at 1.0969. The decline found temporary support at 1.0771, the 23.6% retracement of the 1.0177–1.0954 advance.

Partial profit-taking has provided some lift, though the rebound remains limited as negative momentum persists. The 14-day momentum indicator continues its steady descent toward the centerline, partially offset by the recent golden cross formation of the 20DMA and 200DMA at 1.0727.

For a stronger recovery signal, EURUSD needs to clear the 1.0860 zone (Monday’s high and the 10DMA), which would confirm a higher low and ease downside risks.

Key support levels remain at 1.0771, reinforced by the rising 20DMA and nearby 200DMA (1.0729). A sustained break below these levels would shift the near-term outlook to bearish and open the door for a deeper correction.

Fundamentally, trade tariff negotiations remain a focal point, while market attention is also on upcoming US economic data. Today’s Consumer Confidence report and Friday’s PCE inflation data—closely watched by the Fed—will be key in shaping expectations for future monetary policy moves.

Res: 1.0860; 1.0888; 1.0954; 1.0969
Sup: 1.0771; 1.0760; 1.0729; 1.0700