EUR/USD Price Analysis: Rises above 1.0850 while remaining in overbought territory

• EUR/USD moves below an ascending channel pattern, suggesting a bearish momentum shift.
• The 14-day RSI holding above the 70 mark signals a potential downward correction.
• The pair may find its primary support at the nine-day EMA of 1.0716 level,

The EUR/USD pair gains ground for the third successive session, trading around 1.0860 during the Asian hours on Tuesday. A technical examination of the daily chart indicates a bearish breakout as the pair breaks below an ascending channel pattern, suggesting a shift in momentum from buyers to sellers.

Additionally, the 14-day Relative Strength Index (RSI), a key momentum indicator, is positioned slightly above 70, indicating an overbought situation and downward correction for the EUR/USD pair. However, the pair remains above both the nine-day and 14-day Exponential Moving Averages (EMAs), reinforcing strong short-term momentum.

A successful return to the ascending channel could reinforce the bullish bias and support the EUR/USD pair to explore the region around the upper boundary of the ascending channel at the 1.1050 level.

On the downside, the EUR/USD pair could find the primary support at the nine-day EMA of 1.0716 level, followed by the 50-day EMA at 1.0517 level. A break below this level would weaken the short-term price momentum and put downward pressure on the pair to navigate the area around the 1.0177 level--the lowest since November 2022, last recorded on January 1.

EUR/USD: Daily Chart