The EUR/USD pair has retraced some of its recent gains, hovering around 1.1360 during Wednesday’s Asian session. Despite this pullback, technical analysis continues to indicate a bullish outlook, as the currency pair remains within an ascending channel pattern.
Currently, the EUR/USD trades slightly above the nine-day Exponential Moving Average (EMA), reflecting sustained short-term bullish momentum. Additionally, the 14-day Relative Strength Index (RSI) remains above the neutral 50 level, reinforcing the prevailing positive sentiment.
On the upside, the pair is poised to challenge the April 21 high of 1.1573, which marks its highest level since November 2021. Further resistance is anticipated near the upper boundary of the ascending channel at approximately 1.1730.
However, EUR/USD is currently testing key support levels, with the nine-day EMA at 1.1320 and the lower boundary of the ascending channel near 1.1300. A decisive break below these levels could diminish the bullish outlook, potentially driving the pair towards the 50-day EMA at 1.1057.
Should downward pressure continue, the EUR/USD could extend its decline toward the six-week low of 1.0360, last seen on February 28, weakening medium-term momentum.
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