EUR/USD rises back above 1.0400

The euro recovered a portion of it daily losses against the US dollar during the last hours. EUR/USD rose from 1-week lows and climbed back above 1.0400 as US stocks turned negative. 

The pair bottomed at 1.0371, the lowest since December 20. Then the US dollar weakened in the market and EUR/USD rose recovering ground. It climbed to 1.0410 and currently trades at 1.0405/08, 50 pips below yesterday’s closing price. 

Today’s distance between EUR/USD low and high is 105 pips, the biggest price range since December 15. 

Technical outlook 

According to Valeria Bednarik, Chief Analyst at FXStreet, technical indicators in the 4-hour chart have gathered bearish momentum, maintaining their downward slopes near oversold readings. She explained that price broke through the 20-SMA, that now provides a dynamic resistance around 1.0445, “the comfort zone from earlier this week, all of which favors a new leg lower for the upcoming sessions.”

“As long as the price remains below 1.0420, now the immediate resistance, the pair has scope to retest its year low of 1.0352, with further declines below it opening doors for a test of the 1.0206 level, July 2002 monthly high”, concluded Bednarik.