EUR/USD remains in a holding pattern—likely to continue. For the most part, the EUR/USD has wasted the recovery effort since bottoming at 1.1168 (three-month low) by inching closer to 1.1808 last week but so far failing short of reaching that high again for a second day. But narrow that gap, buyers have not let off the hook yet as price is still trading higher for a third straight day.
On the daily chart, the uptrend is intact. An upward movement is usually open when price action remains with an ascending channel. Momentum seems a little hot, though. The 14-day RSI at 71 is deep into overbought territory. That doesn’t scream “reversal,” but it does indicate the market might struggle a bit or drift sideways for some time before resuming off to the races.
When things run up this quickly, traders get a little jumpy. So, it wouldn’t shock anyone to see some sideways action or consolidation right around these levels.
Technical Structure Continues to Favor Buyers
From a technical standpoint, the bias stays bullish. The nine-day EMA has crossed above the 50-day EMA, and the price has remained above both. That shows buyers are still driving the trend, and demand isn’t drying up.
Traders Watching Support and Resistance: Important Levels Coming Up
The important level to keep an eye on is 1.1800. The pair may attract new buyers and move towards the top of the channel at 1.1880. The next real target for EUR/USD is 1.1918, a level we haven’t seen since the middle of 2021, if it can successfully break past 1.1808.
If the pair slips, first support comes in at the nine-day EMA near 1.1745, which lines up with the bottom of the channel. A break there could take some wind out of the bulls’ sails and put 1.1660 in play, with stronger support waiting near 1.1589.
