• EUR/USD climbs above 0.9830 due to an upbeat sentiment and the break of the 20-day EMA.
• The daily chart shows that the EUR/USD bias remains downwards.
• Short term, the EUR/USD hourly chart depicts the pair as upwards; it could challenge 0.9900 once RSI exits from overbought territory.

The EUR/USD advances sharply above the 0.9800f figure for the first time since October 6, courtesy of broad US dollar weakness amidst a risk-on impulse, as shown by global equities rising. The EUR/USD is trading at 0.9839, above its opening by 1.24%, distancing from the 20-day EMA.

EUR/USD Price Forecast

The EUR/USD keeps trading downwards, even though price action broke above the 20-day EMA, opening the door to test the top trendline of a descending channel drawn from February 2022 highs and also at around the 50-day EMA at 0.9925/32, which, once broken will expose the October 4 daily high at 0.9999, around parity. The break above will expose the 100-day EMA at 1.0141.

In the near term, the EUR/USD opened the week upwards, as shown by Monday’s session, closing around 0.9837. Of note, the major is trading between the daily pivot and the R1 resistance level, with the latter sitting around 0.9886, and with the Relative Strength Index (RSI) at overbought conditions, might refrain traders from opening new longs until the RSI neutralizes.

Once RSI exits from overbought, the EUR/USD first resistance would be the R1 daily pivot. Brak above will expose the 0.9900 figure, followed by the confluence of the October 5 high and the R2 daily pivot at 0.9926/40, followed by 0.9950.

EUR/USD Key Technical Levels