The EUR/USD currency pair continued to trade subdued for the second consecutive day, hovering around 1.1540 during Asian hours on Friday [1]. Technical analysis of the daily chart indicates a potential bullish reversal, as the pair is testing the upper boundary of a descending channel pattern. Despite this, the near-term bias remains mildly bearish, with the price staying below both the nine-day and 50-day Exponential Moving Averages (EMAs), which are capping recovery attempts and confirming a prevailing downside tone [1]. The short-term average is trading under the longer one and has flattened, signaling a lack of bullish follow-through after recent rebounds [1].
Momentum indicators also reflect a soft market, with the 14-day Relative Strength Index (RSI) around 45, suggesting sellers retain a slight advantage without reaching oversold extremes [1]. The pair may navigate the region around the initial support at the eight-month low of 1.1411, recorded on March 13. Further declines could push the pair to test the descending channel around 1.1250 [1]. On the upside, EUR/USD is testing immediate resistance at the upper descending channel boundary near the nine-day EMA at 1.1544. A break above this channel would strengthen the market bias and support a move toward the 50-day EMA at 1.1637, with further advances potentially opening the door to the 1.2082 region, the highest since June 2021, recorded on January 27 [1].
In terms of daily performance, the Euro was the weakest against the Japanese Yen, with a percentage change of -0.01% [1]. Against the US Dollar, the Euro declined by -0.04% [1]. The heat map provided shows minor percentage changes among major currencies, indicating a generally soft tone for the Euro across the board [1].
No forward-looking statements or analyst opinions beyond technical analysis were provided in the article [1].
CONCLUSION
EUR/USD remains under pressure, trading below key moving averages and showing a mildly bearish bias. Technical indicators suggest sellers retain an advantage, with the Euro also showing weakness against major currencies, particularly the Japanese Yen. Market participants should watch for a potential break above resistance levels for signs of a bullish reversal.