EUR/USD Technical Analysis

EUR/USD trades at 1.1659 at the time of writing, pulling back from the top of the descending channel, in the 1.1700 area. Technical indicators are mixed. The Moving Average Convergence Divergence (MACD) line remains above zero, but the histogram is contracting, which highlights a waning upside momentum. The Relative Strength Index (RSI) has pulled back below 50, showing a neutral-to-bearish stance.

The pair might find some support at the channel’s midline, now at 1.1650. ahead of Friday’s low of 1.1618 and the channel’s bottom, now at the 1.1600 area. To the upside, trendline resistance is now at 1.1694, a few pips below Monday’s high. A confirmation above here clears the path towards the January 6 high, at the 1.1740 area.