After a sluggish start to the week, EUR/USD is seen gaining momentum in the intraday as the trend reverses today, i.e., May 26, 2020. EUR/USD recorded a 24-hour low at 1.08689, while at the time of penning down, this analysis was trading at 1.0922.
On the intraday chart, the pair was retaining support from 50-day daily MA while lost 200-day MA support, but if Euro continues to strengthen against the US Dollar for the rest of the day, the pair is likely to regain 200-day MA support at 1.0931.
In the previous week, EUR/USD had recorded a 7-day high at 1.10093, and yesterday, it dipped below 61.80% Fib Retracement level after testing the support below 1.0880. However, today, it has rebounded back to trading above 50.0% Fib due to intraday gain of traction. Important to note that the pair is likely to consolidate around the same trading level today, as the major resistance lies at 1.0950.
Euro seems to be strengthening against the standard reserve currency and is the new safe haven amidst the Pandemic. Today’s rebound has broken the declining trend that was seen forming over the past 2 months after the crash at the onset of the economy lockdown resulting in a standstill. The major support to watch out for lies at 1.088, and the major resistance lies at 1.093.