The EUR/USD currency pair extended its losses for the third consecutive day, trading around 1.1660 during Asian hours on Thursday, and remains just below the 50-day Exponential Moving Average (EMA) at 1.1678 and the nine-day EMA at 1.1700 [1]. Technical analysis indicates a potential bearish reversal, as the pair has slipped below the ascending channel, with the 14-day Relative Strength Index (RSI) at approximately 48, signaling fading bullish momentum and a consolidative bias [1].
On the downside, the pair may approach the eight-month low of 1.1411, recorded on March 13, if bearish pressure persists [1]. Immediate resistance is identified at the 50-day EMA of 1.1678, followed by the nine-day EMA at 1.1700 [1]. A return to the ascending channel could revive bullish sentiment, potentially leading EUR/USD to test the two-month high of 1.1849, reached on April 17, and the upper boundary of the channel around 1.1940. A sustained break above this channel would open the way to 1.2082, the highest level since June 2021, last seen on January 27 [1].
In terms of broader currency performance, the Euro was the weakest against the Australian Dollar, declining by 0.21% on the day. The Euro also posted losses against other major currencies, including a 0.09% drop versus the US Dollar and a 0.14% decline against the Canadian Dollar [1].
No explicit market reactions or analyst opinions were provided in the article, but the technical setup suggests that upside attempts for EUR/USD may struggle while the price remains below the key moving averages [1].
CONCLUSION
EUR/USD continues to face downward pressure, trading below significant technical levels and showing signs of fading bullish momentum. The Euro's weakness against major currencies, particularly the Australian Dollar, underscores the current bearish sentiment. Unless the pair reclaims the ascending channel, further downside toward recent lows remains possible.