EUR/USD Price Analysis: Bulls Reclaim Ground After Bouncing Off Key Support

By Patricio Martín of FX Street

Thursday, February 20, 2025 2:24 PM EDT

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After a sharp three-day decline that saw EUR/USD shed more than 0.50% of its value following last week’s rally, bulls regained control on Thursday. The pair climbed to 1.0440, marking a 0.40% gain as buyers defended the 20-day Simple Moving Average (SMA), which acted as a key technical floor.

Momentum indicators hint at a shift in sentiment. The Relative Strength Index (RSI) has turned higher, now at 57, signaling renewed upside momentum after dipping earlier in the week. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat but holds in green territory, suggesting that bearish momentum has stalled.

Looking ahead, the pair’s ability to hold above the 20-day SMA will be crucial for sustaining a broader recovery. If buyers maintain control, the next key resistance lies near 1.0500, where stronger selling pressure could emerge. On the downside, a break below 1.0420 would invalidate the latest rebound and expose EUR/USD to further losses toward 1.0380.