After a three-day rise, the EUR/USD pair dipped slightly, trading around 1.1870 during Asian hours on Tuesday. A look at the daily chart indicates that the pair is moving upward within an ascending channel, which hints at a continuing bullish trend.
The 9-day exponential moving average (EMA) is positioned above the 50-day EMA, and both are on the rise, suggesting that there’s a short-term upward bias. If there’s a pullback, these averages should provide dynamic support.
The 14-day Relative Strength Index (RSI) is just shy of the overbought territory at 68.90, which confirms the strong bullish momentum following the recent price increase.
Resistance is noted immediately at 1.1918, marking the highest point since June 2021. Above this, the top of the ascending channel is around 1.1950. A break above this channel could encourage the EUR/USD pair to aim for the psychological level of 1.2000.
On the flip side, the EUR/USD is likely to hover near the convergence of the 9-day EMA at 1.1770 and the lower section of the ascending channel around 1.1750. If the pair breaks out of this channel, it might face downward pressure, potentially testing the 50-day EMA at 1.1697, then revisiting the seven-week low of 1.1589 established on December 1, and finally the lower limit of the descending channel near 1.1570.
Additionally, the sentiments and reactions associated with these patterns—like the thrill of seeing the charts align or the anxiousness during fluctuations—reflect a genuine experience many traders are familiar with.
