The EUR/USD pair retraced its previous session gains, trading around 1.0690 in Asian trading hours on Friday. Technical analysis of the daily chart indicates a bearish bias, with the pair consolidating within a descending channel.
Key Technical Insights:
Descending Channel: The EUR/USD pair is observed consolidating within a descending channel on the daily chart, signaling a bearish trend continuation pattern.
Relative Strength Index (RSI): The 14-day RSI is consolidating below the 50 level, indicating a neutral to bearish momentum. An improvement in RSI towards 50 could weaken the bearish bias for the pair.
Key Support and Resistance Levels:
Support: The pair may test the lower boundary of the consolidative range at 1.0670, which also acts as a significant throwback support. A break below 1.0670 would reinforce the bearish outlook, potentially targeting the lower boundary of the descending channel near 1.0620.
Resistance: Immediate resistance is seen at the 14-day Exponential Moving Average (EMA) around 1.0728. Further upside barriers include the upper level of the range at 1.0760. A breakthrough above 1.0760 could lead to a test of the upper boundary of the descending channel at 1.0780, followed by the psychological level at 1.0800.
Conclusion:
The EUR/USD pair continues to exhibit a bearish bias as it consolidates within a descending channel on the daily chart. Traders should monitor key support and resistance levels, particularly the levels around 1.0670 and 1.0760, for potential breakout or reversal signals in the coming sessions.
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