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Title: EUR/USD Price Analysis: Bounces off 50-SMA but stays bearish below 1.0440 hurdle

November 28 , 2022 1:45 AM ET


EUR/USD is licking its wounds near 1.0360, the daily low around 1.0340, while traders are looking for more evidence of an extension of the early decline heading into European Monday.

The recent rally in the major currency pair may be related to a reversal from the 50-SMA, which is around 1.0350 at press time.

However, the bearish MACD signals and a clear downside break of the two-week-old ascending trend line, which is located at 1.0400 at the latest, give hope to the sellers of the EUR/USD pair. The stable RSI (14) also proves the bears' right despite the recent corrective rise.

Even if the quote breaks the support/resistance line at 1.0400, a downward resistance line from November 15 at 1.0440 will be crucial to challenging the pair's buyers.

Following that, the monthly high at 1.0480 could also act as an upside filter before the rally targets the late June high at 1.0615.

On the other hand, a break of the 50-SMA support level at 1.0350 as we write could renew the downside momentum.

In this case, the previous week's low at 1.0220 and the early November swing high at 1.0100 should catch the market's attention before reaching the 200-SMA level at 1.0055.

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