Insights 
VT 
The EUR/USD currency pair is close to testing support around 1.1350, with the potential to revisit the high of 1.1573 from April 21. The Relative Strength Index (RSI) is above 50, showing a bullish trend, and currently, the pair is examining the nine-day Exponential Moving Average (EMA) near 1.1320.
The currency pair is retracting recent progress and is trading near 1.1360 during the Asian session. Technical analysis indicates a bullish trend with the pair positioned in an ascending channel pattern.
Short Term Momentum
Short-term momentum seems strong, as the EUR/USD remains above the nine-day EMA. A retest of the April high is possible, with resistance likely near the ascending channel’s upper boundary at 1.1730.
The nine-day EMA near 1.1320 acts as key support, followed by the channel’s lower boundary around 1.1300. A breach below this area could weaken the bullish trend, potentially reaching the 50-day EMA near 1.1057.
Further downside may soften medium-term momentum, extending losses toward the six-week low of 1.0360. The Euro was the weakest against the US Dollar, with a 0.06% change on the day.
The movement displayed in recent sessions gives us a cleaner picture of what’s driving current behaviour around the EUR/USD pair. We’ve seen the currency pair retrace some of the gains it captured earlier in the week. But on balance, the technical setup leans positive, backed by that RSI reading comfortably above 50, which tends to be interpreted as a continuation of buying interest rather than exhaustion.
Signs Of Consolidation
From our view, the pair is showing early signs of consolidation after a steady incline during previous days. Price action sticking close to the nine-day EMA around 1.1320 is important—not necessarily because it determines upcoming direction on its own, but due to how closely the market has been respecting that level. That EMA is doing its job here, acting as a buffer whenever downside momentum increases intraday. The channel’s anatomy—support at 1.1300 and resistance closer to 1.1730—gives us a framework for judging risk in the approach to higher resistance.
Looking in the other direction, if traders see a decisive daily close below the 1.1300 line, that opens up a different conversation. We’re monitoring the 50-day EMA around 1.1057, as any moves approaching or beneath that level would mark the end of the current uptrend. Short positions would likely begin to build around that stage, especially if accompanied by a declining RSI or longer wicks forming above prices—often signs of demand fading.
It’s easy to get too focused on the short-term candles, but bigger-picture pressure builds as the pair approaches the April highs near 1.1573, a place where sellers previously overwhelmed buyers. That area can’t be ignored. It’s likely to prompt caution among those who’ve been long from lower levels. And unless broader macro factors shift radically, that region acts as a natural checkpoint where upward moves may slow or even turn.
Volatility in peer currencies and reaction to US economic prints may also distort momentum subtly over the coming weeks. That daily 0.06% shift—small as it is—suggests lack of aggression from either side for now, but it won’t remain that way for long. Like most slow starts, they tend to be followed by sharp directional leanings.
Given this setup, we remain attuned to how momentum changes in the zone between 1.1300 and 1.1570. For moves against trend to gather force, a break below the base of the structure followed by rejection on any bounce attempt would validate a more bearish short-term strategy. Layering entries and exits based on EMA alignment with price action remains an efficient way to manage volatility and avoid late commits.
