EUR/USD Price Analysis: Trades around 1.0250 after rebounding from 26-month lows

• EUR/USD may struggle as it is confined within a descending channel pattern.
• The 14-day RSI moves above the 30 level, suggesting a recovery from oversold territory.
• The immediate resistance appears at a nine-day EMA of 1.0290 level.

The EUR/USD pair halts its five-day losing streak, trading around 1.0250 during Tuesday's Asian session. A closer look at the daily chart suggests a continued bearish trend, with the pair moving lower within a descending channel pattern.

The 14-day Relative Strength Index (RSI), a key momentum indicator, has risen above the 30 level, suggesting a recovery from oversold conditions. However, the EUR/USD pair remains below both the nine- and 14-day Exponential Moving Averages (EMAs), pointing to weaker short-term momentum and reinforcing the overall bearish outlook.

On the downside, the EUR/USD pair may revisit its 26-month low at 1.0177, recorded on January 14. A break below this level would lead the pair to test the psychological support level at 1.0000, followed by the lower boundary of the descending channel at 0.9890. A decisive break below this level could strengthen the bearish bias, potentially pushing the pair lower to 0.9730, the lowest point since November 2022.

The EUR/USD pair could encounter primary resistance near the nine-day Exponential Moving Average (EMA) at 1.0290, followed by the 14-day EMA at 1.0318. A breakout above these levels could target the upper boundary of the descending channel at 1.0400, with further gains possibly reaching the two-month high of 1.0630, seen on December 6.

EUR/USD: Daily Chart