EUR/USD is trading largely unchanged after posting modest losses over the previous two sessions, hovering near 1.1740 during early Asian trading on Thursday. From a technical perspective, the daily chart continues to point to a strengthening bullish bias, with the pair holding firmly within an ascending channel.
The euro-dollar pair remains comfortably above both the nine-day and 50-day Exponential Moving Averages (EMAs), a setup that underlines positive short-term momentum. Notably, the nine-day EMA is positioned above the 50-day EMA, while both indicators are trending higher, reinforcing the broader bullish structure.
Momentum indicators also favor the upside. The 14-day Relative Strength Index (RSI) is currently at 67.47, approaching overbought territory and signaling strong buying interest. A sustained move above the 70 level, however, could increase the risk of a short-term corrective pullback.
On the upside, EUR/USD may look to challenge the two-month high at 1.1804, last seen on December 16. Beyond that, the upper boundary of the ascending channel, located near 1.1820, represents the next key technical hurdle. A daily close above this initial resistance zone could open the door for further gains toward 1.1918, a level not seen since June 2021. Conversely, failure to break higher may keep any pullbacks limited toward near-term support levels.
Immediate support is seen at the nine-day EMA around 1.1715, followed by the psychological 1.1700 handle and the lower boundary of the ascending channel near 1.1690. A decisive break below this support area would undermine short-term bullish momentum and expose the pair to further downside toward the 50-day EMA at 1.1644. Additional losses could bring the three-week low at 1.1589, recorded on December 1, back into focus.
EUR/USD: Daily Chart
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