EUR/USD Rebounds as Buyers Hold Ground

At the start of this trading week, the EUR/USD pair experienced a significant rebound following sharp losses at the end of last week. Despite initial selling pressure in the Asian-Pacific session, buyers managed to stabilize prices near 1.15733, where the 100-day moving average and the 38.2% retracement from the July-end low converge. This key support area acted as a crucial barrier against sellers, allowing for a recovery that now sees the pair trading within a range of 1.1613 to 1.16215. A breakout above this interval could be seen as a positive signal for buyers, potentially driving prices towards higher levels, including the 200-day moving average at 1.16305. Only a decline below the 200-day MA would maintain selling pressure in the short term. More broadly, this movement reflects the complex interplay between macroeconomic factors, including recent comments from the U.S. Treasury Secretary regarding the Federal Reserve's response to supply shocks like higher oil prices. These remarks could mitigate expectations of tighter monetary policy by the Fed, contributing to the recent recovery of the euro. While technically still unfavorable for buyers in the short term, any movement above the 200-day MA could be seen as an important signal of a change in market trend.