The EUR/USD currency pair has continued its downward trend, losing ground for the fourth consecutive session and currently trading around 1.1760 during the Asian trading hours on Monday. Technical analysis suggests a weakening bullish sentiment for the pair, as it tests the lower boundary of its ascending channel pattern.
The 14-day Relative Strength Index (RSI) stands at 63.92, which indicates that, despite some easing from recent overbought levels, buyers remain in control. The RSI is still above its midline, reflecting a generally positive outlook, although momentum appears to be cooling off from prior highs.
Additionally, the nine-day Exponential Moving Average (EMA) has crossed above the 50-day EMA, suggesting a reinforcement of the bullish bias. The EUR/USD remains above both moving averages, keeping the short-term uptrend intact. The moving average structure continues to favor upward movement, with the nine-day EMA providing dynamic support and the 50-day EMA supporting broader gains. Maintaining levels above the faster average will likely keep the path of least resistance directed upward.
In terms of potential targets, the EUR/USD pair may aim for the psychological level of 1.1800, followed closely by a three-month high of 1.1808 recorded on December 24. Should the pair push past this resistance confluence, it may open up opportunities for further advances toward 1.1918, marking the highest level since June 2021, and the upper boundary of the ascending channel near 1.1930.
On the downside, immediate support for the EUR/USD pair is found at the nine-day EMA of 1.1757, which aligns with the lower boundary of the ascending channel. A breach of this channel would likely undermine the short-term momentum, putting the 50-day EMA at 1.1673 into play. Further declines could lead to a retest of the three-week low at 1.1589, established on December 1.
In today’s trading activity, the Euro exhibited a range of performance against other major currencies, showing the most significant weakness against the Australian Dollar. The heat map detailing percentage changes illustrates the Euro’s varied performance, with the overall sentiment reflecting some struggles amidst a backdrop of broader market dynamics.
