The EUR/USD currency pair has seen a downward trend for four consecutive days, currently trading around 1.1870 during Asian hours on Friday. The 14-day Relative Strength Index (RSI) is above the midpoint at 56, which suggests that momentum remains stable. Even though the RSI has slightly decreased, it stays above 50, indicating a positive momentum for buyers.
In terms of technical analysis on the daily chart, EUR/USD is positioned above both the 9-exponential moving average (EMA) and the 50-day EMA, which reinforces a bullish sentiment. Notably, the shorter-term average supports an upward trajectory, with the 9-day EMA exceeding the 50-day EMA, reflecting the robustness of the short-term trend. The gradual increase in the 50-day EMA further highlights the medium-term recovery.
If the price can effectively break above the 9-day EMA at 1.1860, it could signal a move toward resistance at 1.2082—marking its highest level since June 2021.
Conversely, if it drops below this short-term average, we might see a retracement towards the 50-day EMA at 1.1766, with attention shifting to stronger support near the 11-week low of 1.1578 recorded on January 19.
