EUR/USD Price Analysis: 20-day SMA failures weigh on upside attempts
16.01.2025, 16:15

EUR/USD Price Analysis: 20-day SMA failures weigh on upside attempts

  • EUR/USD slips 0.23% on Thursday, trading near 1.0270 after losing momentum from a brief uptick.
  • MACD histogram shows rising green bars, hinting at modest buyer interest despite broad headwinds.
  • RSI stands at 43 in negative territory, suggesting only a mild rebound within a prevailing bearish environment.

The EUR/USD pair found some footing on Thursday but still retreated by 0.23% to hover around 1.0270. Although buyers tried to push prices higher in early trade, their efforts were undermined by the failure to sustain a break above the 20-day Simple Moving Average (SMA). This inability to clear key technical barriers highlights the pair’s fragile recovery prospects.

On the technical side, the Moving Average Convergence Divergence (MACD) indicator continues to display rising green bars, indicating that buying pressure has not completely faded. Yet, the Relative Strength Index (RSI), currently at 43, remains in negative territory despite its recent climb, emphasizing the cautious tone surrounding the euro. Unless the pair can overcome persistent resistance around the 20-day SMA, bullish enthusiasm is likely to remain muted.

Looking toward possible inflection points, initial support appears near 1.0250, with a drop below that threshold opening the door to the 1.0220 region. Conversely, a decisive push above the 1.0300 handle would be required for buyers to gain meaningful momentum, potentially setting the stage for a challenge of the 1.0350 barrier if sentiment improves further.

EUR/USD daily chart

 

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