EURUSD was flirting with the 1.09 level all day but managed to rise back above it. The dollar’s recent surge pushed EURUSD pair towards the lower Bollinger band. With RSI below 50 and prices moving under the 50- and 100-day moving averages, the medium term outlook is looking bearish. The next support could come around 1.0519, which was a previous support level in April.
But a near term rebound is possible as the Bollinger’s centreline remains above the 50- and 100-day moving averages after recently crossing them. The stochastic oscillator is also indicating the approach of an upside momentum as it’s in oversold territory and the %K line is trending upwards having crossed above the %D line. The nearest resistance level will be the 50-day moving average around 1.0965. But for a stronger rebound, EURUSD would need to break above the resistance provided by the 100-day moving average at 1.1074.