EUR/USD Price Forecast: Falls to near 1.1600 due to persistent bearish bias

EUR/USD depreciates after registering modest gains in the previous session, trading around 1.1610 during the Asian hours on Thursday. The technical analysis of the daily chart suggests a persistent bearish bias as the EUR/USD pair remains within the descending channel pattern.

The momentum indicator 14-day Relative Strength Index (RSI) has retreated toward the low-30s from overbought readings seen in recent sessions, confirming increasing selling pressure rather than a mere consolidation above prior highs.

The near-term bias turns bearish after the pair slipped below the nine-day Exponential Moving Average (EMA) and now trades under the flatter 50-day EMA, signalling a loss of upside momentum from the earlier advance.

The EUR/USD pair may navigate the region around the seven-month low of 1.1468, followed by the lower boundary of the descending channel around 1.1450.

On the upside, the initial resistance lies at the nine-day EMA of 1.1705, followed by the 50-day EMA at 1.1758 and the upper descending channel boundary around 1.1800. Further advances above the channel would cause the emergence of the bullish bias and support the EUR/USD pair to explore the region around 1.2082, the highest level since June 2021.

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