EUR/USD has lost its traction after rebounding above 1.0800 earlier in the day. The risk-averse market environment, as reflected by a more-than-1% decline in the Euro Stoxx 600 Index, and rising US Treasury bond yields make it difficult for the pair to stage a steady recovery on Tuesday.
Despite the latest recovery attempt, EUR/USD continues to trade below the 20-period SMA on the four-hour chart and the Relative Strength Index (RSI) indicator stays below 50, highlighting the lack of buyers' interest.
In order to extend its rebound, EUR/USD needs to clear the static level that seems to have formed at 1.0830. Above that level, the 1.0850/1.0860 area (50-period SMA, static level) aligns as the next hurdle ahead of 1.0900 (static level, psychological level).
On the downside, key support is located at 1.0760 (static level, post-ECB low). If that level turns into resistance, 1.0730 (April 24, 2020, low) and 1.0700 (psychological level) could be seen as the next bearish targets.
