EUR/USD recovers some of its recent losses from the previous session. It’s trading around 1.0410 during the European hours on Tuesday. Looking at the daily chart, there’s an ongoing bearish bias as the pair stays within a descending channel pattern.
Momentum Indicators
The 14-day Relative Strength Index (RSI), which is a key momentum indicator, stays below the 50 level. This confirms the persistent bearish sentiment for the EUR/USD pair. Also, the nine-day Exponential Moving Average (EMA) is below the 14-day EMA. This shows that the short-term price momentum is weaker.
Support Levels for EUR/USD
On the downside, the two-year low at 1.0332, which was recorded on November 22, is the primary support for the EUR/USD pair. If the pair successfully breaks below this level, it could make the bearish bias stronger. It would then put downward pressure on the pair to move towards the lower boundary of the descending channel at the 1.0010 level.
Resistance Levels for EUR/USD
Immediate Resistance
In terms of resistance, the EUR/USD pair is testing an immediate barrier at the nine-day Exponential Moving Average (EMA) of the 1.0417 level.
Further Resistance
After that, there’s the 14-day EMA at the 1.0433 level. If the pair manages to break through these EMAs, it could lead the pair to approach the upper boundary of the descending channel at 1.0500. Then, it could move towards its seven-week high of the 1.0630 level.
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