EUR/USD Market Analysis: Bearish signals from technical indicators targeting 1.1650

EUR/USD currency pair is showing clear signs of weakening on the daily chart after the price tested resistance at the 50-day EMA at 1.1679 and was pushed back down. The current movement is at 1.1660 in the Asian market on Monday, reflecting ongoing resistance levels.

RSI Indicator Confirms Downward Momentum

The (RSI) (Relative Strength Index) over 14 days is at 42.69, indicating a decline below the midpoint of 50. This signal suggests that sellers still dominate the market. Although RSI has not yet reached an oversold level, the low reading indicates decreasing momentum and a potential short-term correction.

Moving Averages (EMA) Turn Downward

Further analysis from the daily chart shows that the 9-day EMA is sloping downward while the 50-day EMA is beginning to flatten. Currently, EUR/USD is trading below both averages, which is a sign that a recovery from the current levels may require more time and effort. Although the short-term EMA remains slightly above the medium-term EMA, the gap between the two is narrowing. This pattern indicates that the previous bullish trend is losing strength.

Price Targets for Downward Movement

If selling pressure continues to dominate, EUR/USD is expected to move down to the six-week low of 1.1589, recorded on December 1. Should the price break below this level, further decline could target 1.1468, the lowest point since August 2025.

Reversal Point for a Bounce

On the other hand, if buyers regain control, a daily close above the 50-day EMA at 1.1679, approximately 1.1681 from the 9-day EMA, would help restore market strength and signal that EUR/USD is aiming for the three-month high of 1.1808, recorded on December 24. The next long-term target is 1.1918, a significant resistance level as it is the highest since June 2021.

This analysis is based on current technical signals and may change as market conditions develop.