After a three-day slump, EUR/USD bounced back, hovering around 1.1700 during Asian trading on Wednesday. Looking at the daily chart, there seems to be a slight bearish sentiment emerging. The 14-day Relative Strength Index (RSI) sits at 47, which suggests a neutral position and indicates that momentum might be waning.
This pair is currently above the rising 50-day exponential moving average (EMA) but lacks strength as it struggles to breach the 9-day EMA, which is limiting further upward movement. Overall, the trend remains positive for now, as long as it stays above the medium-term average. Yet, without breaking past the short-term average, any recovery may be short-lived.
It’s possible that EUR/USD could revisit near-term support at the 50-day EMA, located at 1.1684. If it closes below this first support level, we might see a weakening in medium-term price momentum, creating added pressure toward the monthly low of 1.1589 from December 1st.
On the brighter side, if it manages to rise, EUR/USD could aim for the nine-day EMA at 1.1724, and perhaps even the three-month peak recorded on December 24 at 1.1808. Achieving such levels would certainly boost short-term momentum and potentially pave the way toward 1.1918, which we’ve not seen since June 2021.
