EUR/USD Price Analysis: Moves above 1.0850 toward the upper boundary of channel

• EUR/USD extends gains toward the upper boundary of the descending channel around the 1.0890 level.
• The 14-day RSI is still positioned above the 50 level, suggesting a bullish sentiment for the pair.
• The pair could find key support around the 50-day EMA at 1.0819 level.

EUR/USD advances for the third consecutive day, trading around 1.0860 during the Asian session on Monday.  The analysis of the daily chart shows that the pair is positioned within a descending channel, suggesting a bearish bias.

However, the 14-day Relative Strength Index (RSI), a momentum indicator, is still positioned above the 50 level, suggesting a bullish sentiment for the EUR/USD pair. Further movement will give a clear directional trend.

The EUR/USD pair could test a potential resistance at the upper boundary of the descending channel around the level of 1.0890, followed by the psychological level of 1.0900. A breakthrough above this level could lead the pair to revisit a four-month high of 1.0948 level.

On the downside, the pair could find the key support at the lower boundary of the descending channel around the 50-day Exponential Moving Average (EMA) at 1.0819 level. A break below this level could exert downward pressure on the EUR/USD pair to navigate the region around the key level of 1.0670, potentially serving as a throwback support level.

EUR/USD: Daily Chart