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EUR/USD Price Forecast: Edges above 1.1600 near six-week lows

EUR/USD Price Forecast: Edges above 1.1600 near six-week lows

101 finance101 finance2026/01/16 03:45
By:101 finance

EUR/USD holds ground after three days of losses, trading around 1.1610 during the Asian hours on Friday. The 14-day Relative Strength Index (RSI) momentum indicator, currently at 35 (neutral-bearish), shows momentum skewed to the downside.

The technical analysis of the daily chart shows that the EUR/USD pair holds below the nine-day Exponential Moving Average (EMA) and the 50-day EMA, underscoring a bearish bias. The short-term average slopes lower beneath the medium-term gauge, capping rebounds.

The bias remains bearish while the EUR/USD pair stays below the short-term average, with downside risks focused on support near the six-week low at 1.1589, set on December 1. A sustained break below this level would open the door to the next support around 1.1468, the lowest since August 2025.

On the upside, the EUR/USD pair could target the initial resistance at the nine-and 50-day EMAs of 1.1648 and at 1.1673, respectively. Recovery through short- and medium-term averages would ease pressure and allow a test of the three-month high of 1.1808, which was recorded on December 24, followed by the 1.1918, the highest level since June 2021.

EUR/USD: Daily Chart

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

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