
EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index (RSI) momentum indicator at 56 (neutral) stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.
The technical analysis of the daily chart shows that the EUR/USD pair holds above the nine-day Exponential Moving Average (EMA), and the slope remains positive. The nine-day average stands above the rising 50-day EMA, maintaining a bullish bias. The near-term trend would remain intact while price holds above the nine-day EMA. The 50-day EMA offers a broader floor for pullbacks.
A daily close above the nine-day EMA at 1.1861 could support the EUR/USD pair to explore the region around 1.2082, the highest level since June 2021.
Whereas a break back below the short-term average would encourage the EUR/USD pair to navigate the region around the 50-day EMA at 1.1769 and shift focus to deeper supports toward the two-month low at 1.1578, set on January 19.

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