EUR/USD is recovering ground above 1.0600 in early Europe. The pair is advancing despite resurgent US Dollar demand and a cautious mood.
EUR/USD climbed out of the descending regression channel coming from early February and the Relative Strength Index (RSI) indicator on the four-hour chart rose above 50, pointing to a bullish shift in the short-term outlook.
On the upside, the pair faces immediate resistance at 1.0620 (50-period SMA) before 1.0660 (Fibonacci 23.6% retracement of the latest downtrend), 1.0680 (100-period SMA) and 1.0700 (psychological level).
In case the pair returns within the descending channel by making a four-hour close below 1.0600 (upper limit of the channel), it could extend its slide toward 1.0580 (20-period SMA) and 1.0550 (mid-point of the channel).
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