During the early trading hours of Monday, the EUR/USD currency pair experienced a slight decline, hovering around the 1.1870 mark. The 14-day Relative Strength Index (RSI) stands at 56, maintaining a neutral stance as it continues to trade above the midline. This development signals an improvement in momentum, even as the RSI has adjusted from previous overbought conditions. The indicator’s stabilization above the 50 mark suggests that any potential dips might be limited, with buyers likely to re-enter the market.
Further analysis of the daily chart indicates that the EUR/USD pair remains firmly above the nine-day Exponential Moving Average (EMA), which is exhibiting a positive slope. This nine-day average is also positioned above the rising 50-day EMA, reinforcing a bullish outlook for the currency pair. As long as the price remains above this short-term average, the near-term trend is expected to remain intact, with the 50-day EMA acting as a stronger foundation for any pullbacks.
Should the EUR/USD pair close above the nine-day EMA at 1.1861, it may pave the way for upward movement toward the 1.2082 range, which represents the highest level reached since June 2021. Conversely, a drop below the nine-day EMA would shift focus to the 50-day EMA at 1.1769, potentially leading the pair to explore deeper support levels, including the two-month low of 1.1578 established on January 19.
Market participants will be keenly monitoring these levels to gauge the future direction of the EUR/USD pair in the coming sessions.
