EUR/USD: Downside still remains

EUR/USD has surged as coronavirus fears sent the dollar tumbling down. Early March's daily chart shows where this rally may end, Yohay Elam from FXStreet analyzes the technical outlook of the pair.

Key quotes

“EUR/USD has made an impressive recovery bounce from the lows of 1.0777, where the Relative Strength Index on the daily chart was below 30 – indicating oversold conditions.” 

"The recent rise has lifted momentum – yet it still leans to the downside. EUR/USD temporarily topped the 50-day Simple Moving Average but was rejected at the 100-day SMA.”

“Support awaits at 1.0985, a low point in December. The former double-bottom from September, at 1.0940, is more significant.” 

“Resistance awaits at 1.1050, the late February high which also converges with the 100-day SMA. The round level of 1.11 also held the pair down in January and converges with the 200-day SMA.”