EUR/USD Price Analysis: Downtrend above 1.0770 has been reduced

• EUR/USD gathers further impulse and surpasses 1.0600.

• The immediate target for bulls emerges at the 1.0770 region.

EUR/USD regained its composure and extended the recovery by crossing the key barrier at 1.0600 at the end of the week.

If the bounce is more severe, the pair is expected to target the weekly high of 1.0767 (September 12). Selling pressure is expected to ease once this level clears, allowing for a potential next move to the important 200-day SMA at 1.0827 today.

Meanwhile, further losses remain on the table as long as the pair navigates the area below the key 200-day SMA.

EUR/USD daily chart