EUR/USD experienced a second consecutive day of decline amid a broader USD recovery. The pair briefly tested the 1.1300 level before rebounding, currently trading around 1.1380, representing a 0.35% intraday decrease. The USD’s resurgence from recent multi-year lows is contributing to the downward pressure. However, concerns regarding the US economic outlook, expectations of further Federal Reserve policy easing, and prevailing risk-on sentiment are limiting the USD’s gains and mitigating losses for the EUR/USD. Technically, the pair has demonstrated resilience below the 23.6% Fibonacci retracement level of its recent upward trend from the 200-day SMA. Bullish signals from the Moving Average Convergence Divergence (MACD) and the daily Relative Strength Index (RSI), which has retreated from overbought conditions, suggest a potential bullish outlook. Caution is advised before anticipating a significant corrective decline, as a sustained break below 1.1300 would be necessary to confirm such a move.
