- EUR/USD faces potential downside as short-term momentum weakens.
- Initial support is seen at the two-year low of 1.0332, marked on November 22.
- Immediate resistance is positioned at the nine-day EMA, around 1.0417.
EUR/USD recovers from recent losses, trading near 1.0410 during Tuesday’s European session. The daily chart highlights a bearish bias, with the pair confined within a descending channel pattern.
The 14-day Relative Strength Index (RSI), a key momentum indicator, remains below 50, confirming sustained bearish sentiment. Additionally, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, signaling weaker short-term price momentum.
On the downside, the two-year low of 1.0332, recorded on November 22, serves as primary support. A decisive break below this level could deepen the bearish outlook, targeting the lower boundary of the descending channel near 1.0010.
Resistance levels include the nine-day EMA at 1.0417, followed by the 14-day EMA at 1.0433. A break above these levels may push the pair toward the channel’s upper boundary at 1.0500, with further gains targeting the seven-week high at 1.0630.
EUR/USD: Daily Chart
