- EUR/USD faced rejection at the 21-day MA for the third straight day on Monday.
- A daily close above the 21-day MA is needed to revive the corrective rally.
EUR/USD’s recovery has stalled at the 21-day moving average and a convincing break above that newfound resistance is needed to invite stronger buying pressure.
As of writing, the pair is trading at 1.0969, representing marginal losses on the day and the 21-day MA is located at 1.0992.
The pair picked up a bid at lows near 1.0879 on Oct.1 and the resulting corrective bounce ran out of steam close to the 21-day MA on Oct. 3. The pair remained bid on Oct. 4, but again faced bullish exhaustion near the key average.
Another attempt to scale the 21-day MA failed on Monday. As a result, the immediate bullish outlook stands neutralized and the pair may face strong selling pressure if the support at 1.0962 (Monday’s low) is breached.
On the higher side, a daily close above the 21-day MA would imply a continuation of the recovery rally and open the doors for a test of resistance at 1.1110 (Sept. 13 high).
Trend: Bullish above 21-day MA