The EUR/USD currency pair is trading close to 1.0550, finding support in the vicinity of the weekly low near 1.0520 heading into early Europe on Friday.
The pair takes advantage of the broad retreat in the US Dollar and the bond yields, despite a downbeat mood. Lagarde speech and US data are in focus.
EUR/USD dropped below 1.0570 (100-period Simple Moving Average (SMA), Fibonacci 23.6% retracement of the latest downtrend) and the Relative Strength Index (RSI) indicator on the 4-hour chart fell below 50, reflecting a bearish tilt in the short-term bias.
In case EUR/USD rises above 1.0570 and starts using that level as support, the pair could gather bullish momentum and target 1.0600 (psychological level, static level) and 1.0640-1.0650 (Fibonacci 38.2% retracement, 200-period SMA).
On the downside, supports are located at 1.0500 (psychological level, static level) and 1.0450 (end-point of the latest downtrend) if 1.0570 stays intact.