The EUR/USD pair is making significant gains, approaching the upper boundary of the descending channel at around 1.0890. This upward movement comes after three consecutive days of positive trading, with the pair currently hovering around 1.0860 during the Asian session on Monday.
Technical analysis of the daily chart indicates a bearish bias due to the descending channel. However, the 14-day Relative Strength Index (RSI) remains above the 50 level, indicating a bullish sentiment for the EUR/USD pair. Further price action will clarify the direction of the trend.
If the pair breaks above the key resistance level at 1.0890, it could target the psychological barrier of 1.0900 and potentially revisit the four-month high of 1.0948. On the downside, the 50-day Exponential Moving Average (EMA) at 1.0819 is a crucial support level. A break below this level could push the pair towards 1.0670.
EUR/USD Analysis Breakdown:
- Current Price: 1.0860
- Resistance Levels: 1.0890, 1.0900, 1.0948
- Support Levels: 1.0819, 1.0670
- Technical Indicators: RSI above 50, Descending Channel
Overall, the EUR/USD pair is showing bullish momentum with the potential to break above key resistance levels. Traders should monitor the price action around 1.0890 for a possible continuation of the upward trend. Conversely, a break below 1.0819 could signal a reversal towards 1.0670.