Euro Retreats After Testing 1.0600

The Euro retreated on Friday after a brief rally to the 1.0600 level. The pair closed the session near 1.0550, still holding above the crucial 20-day Simple Moving Average (SMA). This suggests that the short-term outlook for the EUR/USD remains cautiously optimistic, despite the recent pullback.

Technical indicators present a mixed picture. The Relative Strength Index (RSI) remains in negative territory, indicating cautious sentiment among traders. However, the Moving Average Convergence Divergence (MACD) indicator is showing rising green bars, signaling potential bullish momentum.

Key Levels to Watch

• Resistance: 1.0580, 1.0600
• Support: 1.0550, 1.0530, 1.0500

A sustained break above the 1.0600 level could signal further upside potential for the Euro. Conversely, a move below 1.0550 could trigger a retest of support levels at 1.0530 and 1.0500.