The EUR/USD currency pair is showing signs of resilience after enduring three consecutive days of losses, currently trading around 1.1610 during the Asian trading hours on Friday. The 14-day Relative Strength Index (RSI) reading, which stands at 35, indicates a neutral to bearish momentum, suggesting that while it is not deeply oversold, any upward movement is restrained.
A thorough technical analysis of the daily chart reveals that EUR/USD continues to trade below both the nine-day Exponential Moving Average (EMA) and the 50-day EMA, highlighting a bearish trend. The short-term EMA’s downward slope beneath the longer-term EMA signifies capping potential rebounds in price. The bearish sentiment remains intact as long as the pair stays below these key averages, with a particular focus on support levels nearing the six-week low of 1.1589, established on December 1. A decisive break below this critical level could pave the way for further declines toward the next support level at around 1.1468, which would mark the lowest point since August 2025.
On the contrary, if the EUR/USD manages to gain traction, it could initially aim for resistance levels at the nine-day EMA and the 50-day EMA located at 1.1648 and 1.1673, respectively. A recovery that sees the pair rise above these averages would alleviate some selling pressure, enabling a possible test of the three-month high of 1.1808 registered on December 24. Following this, a move toward 1.1918, the highest level since June 2021, could be on the horizon.
In terms of daily price performance, the Euro has emerged as the strongest currency against the US Dollar, as depicted in the recently released percentage change table. The Euro is gaining against several major currencies, including minor advancements of 0.05% against the Dollar and 0.37% against the New Zealand Dollar. Conversely, the Dollar itself has exhibited minor declines against the Euro and other currencies, with a 0.05% drop against the Euro.
Overall, as the market adjusts to ongoing trends, the EUR/USD pair remains in a critical phase, balancing between potential support thresholds and resistance levels that could significantly influence trading strategies in the forthcoming sessions.
