EUR/USD Price Analysis: Pulls back from session highs, 50-hour SMA is key support

• EUR/USD retreats from the session high of 1.1320 to 1.1304. 
• The 50-hour SMA is the level to beat for the sellers. 

While EUR/USD has pulled back from session highs near 1.1320, it is still trading above the 50-hour simple moving average (SMA) support, currently at 1.1294. 

The pair charted higher lows along the 50-hour SMA throughout the rally from the May 27 low near 1.10 to Friday's high of 1.1384. To put it another way, the technical line has consistently reversed pullbacks over the last week or so. Hence, it is the level to watch out for over the next few hours.

Acceptance below the 50-hour SMA at 1.1294 could cause some buyers to exit the market, leading to a deeper decline toward 1.1250. 

A break below the 50-hour SMA may be seen. as the long upper shadow attached to Friday's candle and an above-70 reading on the 14-day relative strength index is reflective of buyer fatigue. 

At press time, the pair is trading near 1.1304. A bounce from the 50-hour SMA would put 1.14 back on the table.

Hourly chart

Trend: Bearish below 50-hour SMA

Technical levels