The EURUSD is rebounding in the last few hours of trading, supported by softer economic data that has prompted some short covering. Interestingly, U.S. yields are not lower, with the 10-year up 1.3 basis points at 4.113%, while stocks are off their highs but also off the session lows.
Technically, the pair has climbed back into a key swing area between 1.1518 and 1.1529. A break and hold above this zone could invite additional buying from short-term traders who were disappointed by the earlier downside break. The next upside hurdle comes near 1.1541, which aligns with the lows from October 9 and October 14.
A move above and sustained above 1.1541 would strengthen the bullish case and add confidence that a short-term bottom may be in place for the EURUSD.
Conversely, move back below the 1.15185 level and stay below that level would have traders targeting the low for the day at 1.1506 followed by the 50% midpoint of the move up from the May 13 below
