EUR/USD ticks higher after posting mild losses in the prior session, hovering near the 1.1700 mark during early Asian trade on Thursday. From a technical standpoint, the daily chart still shows the pair trading within a descending channel, pointing to a prevailing bearish undertone.
The pair is holding marginally above the 50-day Exponential Moving Average (EMA), while the nine-day EMA has stabilised following recent weakness. The flattening of the medium-term average suggests consolidation rather than a renewed directional move. With the faster EMA still positioned below the 50-day, buyers require stronger follow-through to build upside momentum.
Momentum indicators offer cautious support. The 14-day Relative Strength Index (RSI) sits near 52 and is edging higher, reflecting a neutral but improving bias. A continued rise in the RSI would help validate any upside breakout, whereas a stall around the midpoint could keep prices confined to a range.
On the downside, a move back below the 50-day EMA at 1.1674 and the nine-day EMA at 1.1672 would shift focus toward the seven-week low at 1.1589, last seen on December 1, ahead of the lower boundary of the descending channel near 1.1570.
Conversely, sustained trading above both moving averages would keep the recovery scenario intact, opening the door toward the upper boundary of the descending channel around 1.1760. Beyond that, resistance stands at the three-month high of 1.1808, posted on December 24. A stronger extension could see EUR/USD target 1.1918, its highest level since June 2021.
