EUR/USD Faces Resistance Near Six-Week Peak at 1.1789
The EUR/USD currency pair is encountering immediate resistance close to the six-week high of 1.1789. Despite a slight pullback after gaining roughly 0.5% in the previous trading session, the pair remains supported by a bullish technical outlook. During Asian trading hours on Monday, EUR/USD hovered around 1.1710, maintaining its position within an ascending channel pattern on the daily chart.
Technical Indicators Signal Continued Bullish Momentum
Technical analysis highlights a prevailing bullish bias for EUR/USD. The 14-day Relative Strength Index (RSI) remains above the 50 threshold, reinforcing the positive momentum. Additionally, the pair is trading above the nine-day Exponential Moving Average (EMA), which suggests that short-term price momentum is still strong.
On the upside, the pair could aim to retest the six-week high of 1.1789, last seen on July 24. Beyond this level, the next target is 1.1830, marking the highest point since September 2021. Should the bullish trend persist, EUR/USD may challenge the upper boundary of the ascending channel near 1.1870.
Support Levels to Watch Amid Potential Pullbacks
On the downside, immediate support is identified at the lower boundary of the ascending channel, around 1.1690. This is followed by the nine-day EMA at approximately 1.1666. A decisive break below these support levels could undermine the short-term bullish momentum, potentially pushing the pair toward the 50-day EMA near 1.1585.
If bearish pressure intensifies, EUR/USD might test the two-month low of 1.1391, recorded on August 1. This level represents a significant support zone that could influence the pair’s near-term trajectory.
Euro Performance Against Major Currencies
In broader currency markets, the euro showed mixed performance against major counterparts. It was notably the weakest against the New Zealand dollar during the latest trading session. The table below summarizes the percentage changes of the euro against selected currencies:
| Currency | Change vs EUR (%) |
|---|---|
| USD | -0.07 |
| GBP | -0.14 |
| JPY | 0.05 |
| CAD | -0.17 |
| AUD | -0.21 |
| NZD | -0.34 |
| CHF | -0.00 |
This mixed performance underscores the euro’s vulnerability in certain currency pairs, despite its relative strength against others.
Summary
EUR/USD remains in a cautiously optimistic phase, supported by technical indicators that favor further gains. Key resistance levels at 1.1789 and 1.1830 will be critical to watch for potential breakouts. Conversely, support near 1.1690 and 1.1666 will be essential to maintain the bullish momentum. Traders should monitor these levels closely as the pair navigates within its ascending channel, with broader currency trends adding context to the euro’s performance.