EUR/USD Price Forecast: Trades around 1.1700 after rebounding from 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1700 during the Asian hours on Wednesday. On the daily chart, technical analysis indicates a potential for a bearish bias; the 14-day Relative Strength Index (RSI) at 47 (neutral) confirms waning momentum.

The EUR/USD pair holds above the rising 50-day Exponential Moving Average (EMA), but sits beneath the nine-day EMA, which caps upside. The broader tone remains positive while above the medium-term average, though failure to reclaim the short-term average would keep the pullback intact.

The EUR/USD pair could re-test its immediate support at the 50-day EMA of 1.1684. A close below the first support would weaken the medium-term price momentum and put downward pressure on the pair to test the monthly low of 1.1589, set on December 1.

On the upside, the EUR/USD pair could target the nine-day EMA at 1.1724, followed by the three-month high of 1.1808, which was recorded on December 24. Further advances would improve the short-term momentum and open the doors toward the 1.1918, the highest level since June 2021.

(The technical analysis of this story was written with the help of an AI tool.)