The EUR/USD pair had a small increase on Friday. It was trading near 1.0430 after experiencing recent losses.
End of a Shortened Week
The pair ended the shortened week with a modest bounce. However, it’s still trading below the 20-day Simple Moving Average (SMA), which shows that the downtrend is still there. The SMA, which is above the current price levels, will be the first target for buyers if they want to create a more positive outlook in 2025.
Technical Signals
RSI Indication
The Relative Strength Index (RSI) has gone up sharply to 44. But it’s still in negative territory. This means that the efforts by buyers are weak and not very certain.
MACD Signal
The Moving Average Convergence Divergence (MACD) histogram shows flat green bars. This suggests that the market might be losing some of its earlier bearish push, but it hasn’t clearly turned in favor of the buyers yet.
Outlook for EUR/USD
Need for a Sustained Move
Traders will have to see the pair make a lasting move above the 20-day SMA to confirm that there’s a real change in the trend.
Risk of Fresh Selling Pressure
If there isn’t such a breakthrough, the pair will probably stay at risk of facing new selling pressure. Even though the price action has stabilized recently, the downside risks are still there.
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