During Tuesday’s Asian session, EUR/USD retreated slightly to trade near 1.1870, ending a three-day winning streak. Despite this dip, technical analysis on the daily chart indicates a sustained bullish bias as the pair continues to oscillate within an ascending channel pattern.
The short-term outlook remains positive, supported by the rising nine-day Exponential Moving Average (EMA) positioned above the similarly rising 50-day EMA. These moving averages are expected to act as dynamic support zones during price pullbacks. Furthermore, strong bullish momentum following the recent rally is confirmed by the 14-day Relative Strength Index (RSI), which stands at 68.90, hovering just below overbought territory.
On the upside, immediate resistance is located at 1.1918—the highest level recorded since June 2021—followed closely by the ascending channel’s upper limit near 1.1950. A successful breakout above this channel could pave the way for a test of the psychological 1.2000 handle.
Conversely, on the downside, the pair could find a support zone around the confluence of the nine-day EMA at 1.1770 and the channel’s lower boundary near 1.1750. A breach below this ascending channel would increase bearish pressure, potentially targeting the 50-day EMA at 1.1697. Subsequent support levels lie at the seven-week low of 1.1589 (set on December 1) and the bottom of a separate descending channel around 1.1570
