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The Euro (EUR) extends its rebound against the US Dollar (USD) on Friday, building on renewed weakness in the Greenback. At the time of writing, EUR/USD is trading near 1.1575, its highest level since October 30.

The pair is showing strong upside momentum after briefly sliding to a three-month low on Wednesday and is on track to post a weekly gain following two consecutive weeks of declines.

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On the daily chart, the pair remains confined within a descending parallel channel that has guided price action since September 17, when EUR/USD peaked at 1.1918, its highest level since June 2021. The latest rebound brings the pair closer to the upper boundary of the channel, which aligns with the 21-day Simple Moving Average (SMA) near 1.1590.

A decisive break above this zone could attract fresh buying interest from the bulls and open the door toward the 1.1665–1.1670 region, where the 50-day and 100-day SMAs converge. Sustained strength beyond this area would signal a bullish breakout and mark the first meaningful shift in trend since mid-September.

On the downside, immediate support lies at the weekly low of 1.1468, near the lower boundary of the channel. A break below this region could reignite bearish pressure, exposing 1.1461, the July 31 low, as the next downside target.

Momentum indicators are turning constructive. The Relative Strength Index (RSI) has recovered from near-oversold territory and now hovers just below the 50 threshold, suggesting that bullish pressure is gradually building. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is showing early signs of a bullish crossover, as the signal lines narrow and the histogram fades from negative territory.

Overall, EUR/USD’s short-term outlook remains constructive as long as the pair holds above 1.1500. Bulls are regaining confidence, and a daily close above 1.1600 would confirm the start of a broader recovery phase following weeks of downward correction.

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