EUR/USD extends its upward momentum for a second consecutive session, trading around 1.1780 during Asian hours on Tuesday. Technical analysis on the daily chart highlights a persistent bullish bias, with the pair moving within an ascending channel. The 14-day Relative Strength Index (RSI) stands at 68.89, approaching overbought levels, indicating strong demand but suggesting that gains could be capped if overbought conditions intensify.
Bullish momentum reinforced by moving averages
The pair remains above both the nine-day and 50-day Exponential Moving Averages (EMA), supporting the near-term bullish outlook. The shorter EMA leads the longer one, reinforcing upward momentum, while both averages slope higher and price action continues to respect the upside. This alignment maintains a firm trend tone for the pair.
Key resistance and upside targets
EUR/USD is approaching the psychological 1.1800 level, close to the two-month high of 1.1804 recorded on December 16. A decisive break above this resistance could open the path toward the upper boundary of the ascending channel near 1.1870, with further upside targeting 1.1918, the highest level since June 2021.
Support levels to watch
On the downside, initial support is found at the nine-day EMA around 1.1731, followed by the lower boundary of the ascending channel near 1.1720. A breach below the channel would weaken short-term bullish momentum, exposing the 50-day EMA at 1.1653. Further declines could test the three-week low of 1.1589, recorded on December 1.
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