EUR/USD Currency Update

The EUR/USD pair bounced back after experiencing a decline of 0.75% the prior day, trading around 1.1530 during Asian hours on Monday. Technical indicators on the daily chart suggest that the bearish trend persists, as the pair hovers near the lower boundary of a descending channel.

In the short term, the EUR/USD maintains a bearish sentiment, with the price stabilizing around the 9-day and 50-day exponential moving averages (EMAs). Notably, the 14-day Relative Strength Index (RSI) is approaching oversold levels at 35. This indicates that, while there’s still downward pressure, the pace of decline may ease as sellers become stretched.

The pair might retest the lower edge of the descending channel at approximately 1.1510. If it falls below this, it could reinforce the bearish trend, potentially pushing the pair down to test the 10-month low of 1.1411, previously observed on March 13th.

Looking upwards, the principal resistance is at the 9-day EMA, currently at 1.1591, followed by the 50-day EMA at 1.1654. Further resistance exists near the top of the descending channel around 1.1710. A breakthrough above this level could expose the recent 4-month high of 1.1849, achieved on April 17th.