EUR/USD Bulls Eye Break Above 1.0450 Supported by RSI Gains
Image Credit: FXSTREET
EUR/USD continues its upward momentum for the third straight day, trading near 1.0440 during early Asian trading hours on Monday. Despite the gains, the daily chart highlights a prevailing bearish trend as the pair remains within a descending channel pattern.
The 14-day Relative Strength Index (RSI), a key momentum gauge, sits below the 50 mark, signaling ongoing bearish sentiment for EUR/USD. However, any further improvement in RSI could indicate a diminishing bearish bias.
The nine-day Exponential Moving Average (EMA) is positioned below the 14-day EMA, reflecting weaker short-term price momentum. This alignment suggests the pair may continue to face downward pressure.
On the downside, immediate support is found at the two-year low of 1.0332, recorded on November 22. A decisive break below this level could strengthen the bearish outlook, potentially driving the pair toward the lower boundary of the descending channel near 1.0090.
For resistance, EUR/USD is testing the nine-day EMA at 1.0449, with the next hurdle at the 14-day EMA at 1.0470. A sustained move above these resistance levels could pave the way for the pair to challenge its six-week high of 1.0630.
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