• EUR/USD may approach the two-month high of 1.1804.
• The 14-day Relative Strength Index stands at 67.47, indicating strong upside momentum.
• The primary support lies at the nine-day EMA of 1.1715.

EUR/USD remains flat after two days of small losses, trading around 1.1740 during the Asian hours on Thursday. On the daily chart, technical analysis indicates a strengthening of a bullish bias, as the pair continues to trade within an ascending channel pattern.

The EUR/USD pair holds above the rising nine- and 50-day Exponential Moving Averages (EMAs), reinforcing a bullish bias. The nine-day EMA stands above the 50-day, and both slopes are higher.

The 14-day Relative Strength Index (RSI) prints 67.47, near overbought, signaling strong upside momentum. A break above 70 mark would indicate a downward correction in a short period.

The EUR/USD pair could target the two-month high of 1.1804, reached on December 16, followed by the upper boundary of the ascending channel around 1.1820. A daily close above the first barrier could extend gains toward the upper level, while failure to clear it would keep pullbacks contained toward the short-term average. A break above the confluence resistance zone would support the pair to explore the region around 1.1918, the highest since June 2021.

The immediate support lies at the nine-day EMA of 1.1715, followed by a psychological level of 1.1700 and the lower ascending channel boundary around 1.1690. A break below this support area would weaken the short-term price momentum and put downward pressure on the EUR/USD pair to test the 50-day EMA at 1.1644, followed by the three-week low of 1.1589, which was recorded on December 1.

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