EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.
In the daily chart, EUR/USD trades at 1.1859. The 55-day Simple Moving Average (SMA) rises above the 100- and 200-day SMAs, underscoring a bullish alignment. Price holds above these trend markers, with the 55-day SMA at 1.1744 offering initial dynamic support. The RSI stands at 55, above the midline, supporting upward momentum.
The slower 100- and 200-day SMAs slope higher at 1.1683 and 1.1632, reinforcing the broader uptrend and marking secondary support layers. The Average Directional Index at 31 indicates firm trend strength. Holding above the rising averages would keep the bias pointed higher, whereas a pullback through 1.1683 could expose the 1.1632 area.
Bottom line
For now, EUR/USD is being driven far more by the US narrative than by developments in the euro area.
With the Fed’s 2026 rate path still lacking clarity and the euro area yet to deliver a convincing cyclical rebound, upside progress is likely to remain gradual rather than morphing into a clean and sustained breakout.
