The EUR/USD pair saw a rebound after three consecutive days of decline, trading around 1.1790 during the Asian session on Thursday. The 14-day Relative Strength Index (RSI) stands at 47, which indicates a neutral momentum. An RSI below 50 seems to balance things out, possibly limiting any further momentum.
Looking at the daily chart, the technical indicators show that the 50-day Exponential Moving Average (EMA) is trending upwards, with the price remaining just above it. The 9-day EMA, having flattened out from its earlier strength, is maintaining the upper limit for a potential short-term recovery. Although the short-term average remains above the 50-day EMA, indicating a bullish outlook, the tightening spread hints at a possible correction.
The first level of support is at the 50-day EMA, which is currently at 1.1774. If there’s a dip below this medium-term average, it would only reinforce a bearish sentiment and expose a two-month low of 1.1578 touched on January 19th.
The EUR/USD pair is facing an immediate barrier at the psychological mark of 1.1800, followed by the 9-day EMA at 1.1833. Should the daily close be above this short-term average, it could lead to a bullish sentiment, potentially reaching the highest level since June 2021 at 1.2082.
