EUR/USD Technical Analysis: Off 3-week lows, corrective bounce likely

EUR/USD is currently trading at 1.1226, having hit a low of 1.1210 on Friday - the lowest level since March 8.

The shared currency could see a corrective bounce above 1.1250 in the next 24 hours, as signs of bearish exhaustion have emerged on the technical charts.

To start with, the currency pair created a doji with a long upper shadow on Friday, which is widely taken to be a sign of indecision. The doji, however, has appeared after a sell-off from 1.1448 to 1.1210, so it could be argued that the indecision is predominantly among sellers.

Further, the relative strength index (RSI) has diverged in favor of the bulls on the 4-hour chart.

The case for a corrective rally to 1.1250 or higher would weaken if the descending 5-day moving average (MA), currently at 1.1234, proves a tough nut to crack.

Daily chart

4-hour chart

Trend: bounce likely