EUR/USD Technical Analysis: Rebound is seen as corrective only with the next target just above the 1.1200 handle

• EUR/USD is prolonging the rebound from recent lows and approaches the key barrier at 112.00 the figure.
• Immediate target to the upside remains at the 10-day SMA ahead of the 21-day SMA at 1.1204 and 1.1230, respectively. Of more relevance, the 55-day SMA is located at 1.1278 and is considered the last defence for a test of April tops in the low-1.1300s.
• In the meantime, the current squeeze higher is considered as corrective only and the outlook on spot should stay negative while below the multi-month resistance line, today at 1.1325. This hurdle is reinforced by the proximity of the 100-day SMA. Downside pressure should mitigate above this area.

EUR/USD daily chart