EUR/USD Price Analysis: Pair rebounds to 1.0400 after Thursday's sell-off, still below 20-day SMA

• EUR/USD rises by 0.45% on Thursday to 1.0400, recovering slightly from a sharp drop.
• RSI stands at 35, in negative territory but rising sharply, suggesting an attempt to regain momentum.
• MACD histogram shows rising red bars, indicating persistent bearish pressure, albeit with signs of easing.

After a steep decline of more than 1% in the prior session, EUR/USD managed a modest rebound on Thursday, climbing 0.45% to trade near 1.0400. Despite this partial recovery, the pair remains comfortably below the 20-day Simple Moving Average (SMA), which continues to cap any meaningful upside attempts.

Technical indicators paint a mixed picture. The Relative Strength Index (RSI) has improved to 35, still in negative territory but rising sharply, hinting at diminishing selling pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram prints rising red bars, reflecting ongoing bearish momentum, though it may be starting to wane.

A sustained break above the 20-day SMA is needed to shift the short-term outlook to a more positive stance. Until then, the bias remains tilted to the downside, and the pair's recent gains appear more like a relief bounce than a genuine trend reversal.

EUR/USD daily chart