EUR/USD Price Forecast: Falls toward 1.1650 after retreating from moving averages
EUR/USD edges lower after registering modest gains in the previous session, trading around 1.1660 during the Asian hours on Monday. The 14-day Relative Strength Index (RSI) momentum indicator at 42.69 sits below the 50 midline and is easing, confirming a bearish tilt. RSI near 43 keeps sellers in control without reaching oversold, suggesting consolidation could precede follow-through.
The technical analysis of the daily chart shows that the nine-day Exponential Moving Average (EMA) is slipping, while the 50-day EMA has flattened, leaving price beneath both and capping rebounds. The absence of a bearish cross, with the short-term average still marginally above the medium-term average, underscores a fading but not broken uptrend, with narrowing spreads signaling waning momentum.
On the downside, the EUR/USD pair may navigate the region around the six-week low of 1.1589, set on December 1. A break below this level would expose the next base around 1.1468, the lowest level since August 2025.
The immediate resistance lies at the 50-day EMA of 1.1679, aligned with the nine-day EMA at 1.1681. A daily close above the averages would revive the momentum and support the EUR/USD pair to target the three-month high of 1.1808, which was recorded on December 24, followed by the 1.1918, the highest level since June 2021.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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