EURUSD is recouping some of the losses of the preceding days, finding support at the 16-month low of 1.1461. The pair dived beneath the falling channel and is holding well below the steep long-term downtrend line.
Looking at the technical indicators, the RSI is turning up from the negative region, while the MACD is losing the negative momentum but is still standing below its trigger and zero lines. Both are suggesting a bullish correction movement before the market dips further.
If the price continues the rebound, immediate resistance could be faced from the 1.1520 barrier, taken from the latest inside swing low. Above this level, the pair could meet the 20- and 40-day simple moving averages (SMAs) at 1.1568 and 1.1590 respectively, before touching the diagonal line around the 1.1600 psychological mark. Overcoming these strong obstacles, traders could have a look at the 23.6% Fibonacci retracement level of the down leg from 1.2348 to 1.1461 at 1.1647 ahead of the 1.1695 barrier.
Alternatively, a decline beyond the multi-month trough of 1.1461 could take the pair until the 1.1365 support before tumbling to the 1.1170 bottom, registered in June 2020.
In conclusion, EURUSD is hovering above the low that was posted on Friday and any jumps above the descending trend, could endorse the bullish movement in the short-term.
