• EUR/USD rebounds modestly on Wednesday as the US Dollar loses traction, snapping a three-day losing streak.
• The US Dollar Index eases from one-week highs, trading near 98.84, offering limited relief to the Euro amid a cautious market tone.
• Technical outlook stays bearish within a descending channel; bulls need a close above 1.1700 to shift near-term bias.

The Euro (EUR) edges higher against the US Dollar (USD) on Wednesday, snapping a three-day losing streak as the Greenback loses momentum. At the time of writing, EUR/USD is trading around 1.1611, bouncing off the intraday low near 1.1576.

Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is drifting lower from one-week highs, trading around 98.84, down nearly 0.13%.

From a technical perspective, the pair remains confined within a descending parallel channel that has been in place since September 17, when EUR/USD peaked at 1.1918, its highest level since June 2021. The broader structure continues to favor sellers, as the pair trades below both the 50-day and 100-day Simple Moving Averages (SMAs), currently aligned around 1.1690 and 1.1656, respectively.

A sustained break above these moving averages and the channel’s upper boundary could open the door toward 1.1750, near the October 3 high, followed by 1.1800, aligning with the September 24 peak.

On the downside, initial support is seen around 1.1550, coinciding with the channel floor. A decisive break below this level could expose 1.1500, followed by 1.1400, which corresponds to the August 1 low.

Momentum indicators remain cautious. The Relative Strength Index (RSI) hovers around 44, suggesting weak bullish momentum and room for consolidation. Meanwhile, the Moving Average Convergence Divergence (MACD) line stays below the signal line, and the histogram continues to print shallow red bars, signaling that downside momentum is easing but not yet reversed.

EUR/USD needs a clear daily close above 1.1700 to confirm a breakout from the descending channel. Until then, the bias remains tilted to the downside, with sellers likely to defend the 1.1650-1.1700 region and keep pressure toward 1.1500 in the near term.