EUR/USD stabilizes after four consecutive sessions of declines, trading near the 1.1680 area during Thursday’s Asian session. Despite the pause in selling pressure, technical indicators continue to point to fading upside momentum, keeping the pair vulnerable to further downside risks.
On the daily chart, the 14-day Relative Strength Index stands at 42.6, firmly below the 50 midline and in neutral-to-bearish territory. As long as the RSI remains below this threshold, bearish pressure is likely to persist and cap recovery attempts.
Price action remains capped below key moving averages
The pair is currently trading below the nine-day Exponential Moving Average and marginally under the 50-day EMA, highlighting a loss of bullish traction. While the medium-term 50-day average continues to edge higher, it is showing signs of flattening, whereas the short-term EMA has already turned lower, reinforcing a near-term bearish bias.
As long as EUR/USD remains below the declining nine-day EMA, downside risks are likely to dominate. Sustained weakness beneath this short-term resistance could keep sellers in control and prevent a meaningful rebound.
Support and resistance levels to watch
A daily close below the 50-day EMA at 1.1682 would further weaken the medium-term technical outlook and increase the likelihood of a deeper pullback toward the monthly low at 1.1589, recorded on December 1.
On the upside, a decisive move back above the nine-day EMA at 1.1711 would help revive short-term momentum and shift focus toward the three-month high at 1.1808, set on December 24. A sustained break above that level would significantly improve the technical structure and open the door for an advance toward 1.1918, the highest level since June 2021.
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