EUR/USD Price Analysis: Extends recovery, the first upside target is seen at 1.0700


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  • EUR/USD rebounds to 1.0688 amid the weaker US Dollar on Thursday. 
  • The bearish outlook of the pair remains intact below the key 100-period EMA. 
  • The first upside target is seen at 1.0700; the initial support level is located at 1.0622.

The EUR/USD pair extends its recovery near 1.0688 on Thursday during the early European trading hours. The rebound of the major pair is backed by the selling pressure in the US Dollar Index (DXY) to 105.78. However, the upside of EUR/USD might be limited as the market expected the European Central Bank to cut the interest rate in June, which weighs on the Euro (EUR) against the Greenback. 

From a technical perspective, EUR/USD keeps the bearish vibe unchanged on the four-hour chart as the major pair is below the key 100-period Exponential Moving Average (EMA). However, the Relative Strength Index (RSI) stands in bullish territory around 55, suggesting that further upside cannot be ruled out. 

The first upside barrier of the major pair will emerge near the 50-period EMA and round figure at 1.0700. The additional upside filter to watch is the 100-period EMA at 1.0745. Further north, the next hurdle is seen near a low of March 22 and psychological level at 1.0800, en route to a high of April 9 at 1.0885. 

On the flip side, the initial support level for the major pair is located near a low of April 12 at 1.0622. The next contention level to watch is the 1.0595–1.0600 zone, indicating the lower limit of the Bollinger Band and round mark. Any follow-through selling below the latter will pave the way to a low of November 2 at 1.0565.

EUR/USD four-hour chart