EURUSD continues to trade within a well-defined ascending channel, with price recently pulling back from the highs near the 1.1700 major psychological mark to test support at the channel bottom.

The pair is currently consolidating around 1.1653, suggesting potential for another leg higher if the channel structure remains intact.

The Fibonacci extension tool applied to the recent move shows potential upside targets if the uptrend resumes. The 0.00% level at 1.1628 marks the base of the current swing, while the 0.382 extension sits at 1.1678.

Higher targets include the 0.5 extension at 1.1693, the 0.618 level at 1.1708, and the 0.764 extension at 1.1727. The ultimate target lies at the 1.0 extension around 1.1757 if bullish momentum accelerates.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the rally is more likely to gain traction than to reverse. Both moving averages are sloping higher and positioned below current price action, suggesting they could serve as dynamic support on any further pullbacks.

Stochastic is climbing from the oversold region, indicating that buyers are beginning to regain control after the recent correction. The oscillator has room to move higher before reaching overbought conditions, which means bullish momentum could build in the near term.

RSI is also turning higher from the lower half of its range, reflecting renewed buying interest. The oscillator has plenty of room to climb, suggesting that EURUSD could continue following suit if the channel support holds and buyers remain committed to pushing prices toward the Fibonacci extension targets.

EURUSD could take cues from the upcoming FOMC statement, as the Fed is widely expected to cut interest rates but possibly suggest a more cautious to neutral outlook in 2026. More hawkish commentary from Fed head Powell could bring USD upside, but it’s also worth noting that his term is about to end soon.