03 Jan 2025

EUR/USD could experience further appreciation, as the 14-day RSI suggests an imminent upward correction. The first resistance level is observed near the nine-day EMA at 1.0350. The pair may also find support in the vicinity of the psychological threshold of 1.0000.

The EUR/USD pair halts its four-day decline, currently trading around 1.0270 during the Asian session on Friday. An analysis of the daily chart indicates a continued bearish sentiment, as the pair is trending downward within a descending channel formation.

The 14-day Relative Strength Index (RSI), an essential momentum indicator, is currently positioned near the 30 mark, suggesting an oversold state and the potential for a short-term upward correction. Nevertheless, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, indicating a lack of strength in short-term price momentum and reinforcing the prevailing bearish outlook.

The EUR/USD pair may encounter significant resistance at the nine-day Exponential Moving Average (EMA) around 1.0350, followed by the 14-day EMA at 1.0379. Should the pair surpass these resistance levels, it could target the upper boundary of the descending channel at 1.0470, with further advances possibly reaching the seven-week high of 1.0630.

On the downside, the EUR/USD pair might explore the area near the psychological support level of 1.0000, followed by the lower boundary of the descending channel at 0.9970. A decisive breach below 0.9970 could exacerbate the bearish sentiment, potentially leading the pair to test 0.9730, the lowest point recorded since November 2022.