EURUSD: Pair Trying to Recover from This Week’s Decline

The Euro was trying to trim some of this week's losses and the EURUSD pair rose to around 20 pips from daily lows, with the EURUSD pair trading near 1.1380 during the London session.

However, the Euro is now facing the first resistance of previous lows, which is near 1.1380. If this level is broken, further movement toward the short-term trend line at 1.1390 could occur. After breaking this trend line, a small relief rally might occur, possibly pushing the EURUSD pair to previous lows and highs near 1.1440.

From the short-term perspective, if the Euro trades below 1.1440, the outlook still seems bullish, targeting today's daily lows at 1.1360. The current cycle lows could then move near the 1.13 handle.

There is a slight bullish divergence on the two-hour chart between the RSI indicator and the price, which could support the single currency today. However, if the pair trades below 1.1380, even the immediate outlook seems bearish.

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