The EUR/USD currency pair may continue to depreciate further due to its weaker short-term price momentum. Currently trading around 1.0410 during the European hours on Tuesday, the pair has been displaying a bearish bias as it remains within a descending channel pattern. With the 14-day Relative Strength Index (RSI) below the 50 level and the nine-day Exponential Moving Average (EMA) indicating weaker short-term price momentum, the EUR/USD pair is facing downward pressure.
The primary support for the EUR/USD pair is seen at its two-year low of 1.0332, which was recorded on November 22. A successful break below this support level could reinforce the bearish sentiment and lead the pair towards the lower boundary of the descending channel around the 1.0010 level. On the other hand, immediate resistance is present at the nine-day EMA of 1.0417, followed by the 14-day EMA at 1.0433. Breaking above these EMAs could pave the way for the pair to approach the upper boundary of the descending channel at 1.0500, as well as its seven-week high at 1.0630.
In terms of the Euro’s performance against other major currencies, the table shows the percentage changes of the Euro (EUR) compared to USD, GBP, JPY, CAD, AUD, NZD, and CHF. Today, the Euro was strongest against the New Zealand Dollar. The heat map provides a visual representation of these percentage changes, allowing for a quick comparison between different currency pairs. Overall, the Euro has shown varying degrees of strength and weakness against other major currencies.
In conclusion, the EUR/USD pair is likely to experience continued downward pressure due to its weaker short-term price momentum and ongoing bearish bias. With key levels of support and resistance identified, traders can monitor these levels for potential trading opportunities. The Euro’s performance against other major currencies also provides valuable insight for traders looking to diversify their portfolios. Keeping track of these developments will enable traders to make informed decisions and navigate the complex world of foreign exchange trading.
