EUR/USD Forecast: Euro needs to clear 1.0950 hurdle to extend rebound.

 EUR/USD has snapped a five-day losing streak on Tuesday.The pair could continue to erase its losses if it manages to clear 1.0950 resistance.The improving market mood is helping the shared currency find demand early Wednesday.EUR/USD has continued to push higher after posting its first positive daily close of March on Tuesday. The pair faces the first resistance at 1.0950 and it could extend its recovery if sellers fail to defend this level.

The improving market mood mid-week is helping the shared currency find demand while not allowing the greenback to continue to gather strength. 

In short, EUR/USD’s rebound seems to be a technical correction for the time being. Although the pair could continue to push higher in the short term if risk flows dominate the markets, it needs a fundamental boost to turn bullish in a convincing way.

EUR/USD Technical Analysis

For the first time in more than a week, a four-hour candle closed above the 20-period SMA on Wednesday. The Relative Strength Index (RSI) indicator on the same chart, however, is yet to confirm a bullish shift as it remains below 50.On the upside, 1.0950 (static level) aligns as the first resistance ahead of 1.1000 (psychological level) and 1.1050 (50-period SMA).Supports are located at 1.0900 (psychological level), 1.0840 (static level) and 1.0800 (22-month low, psychologically level).

EUR/USD floats above 1.0900 as bulls and bears jostle over Ukraine crisis, inflation fears.EUR/USD fades the previous day’s rebound from 22-month low, sidelined of late. Softer yields, cautious optimism weigh on DXY as markets await Thursday’s Russia-Ukraine peace talks in Turkey. Fears of more economic hardships for the bloc, higher inflation keep EUR bears hopeful.

EUR/USD News .GBP/USD dribbles inside weekly range around 1.3100.GBP/USD bears take a breather around 1.3120 as the quote snaps a three-day downtrend heading into Wednesday’s London open. However, an immediate rectangle formation joins sluggish Momentum to restrict the quote’s further upside around 1.3145.