The post Bearish momentum fades, 1.1700 caps recovery appeared on BitcoinEthereumNews.com.

The Euro (EUR) regains traction against the US Dollar (USD) at the start of the week, as renewed weakness in the Greenback lifts EUR/USD away from one-month lows. At the time of writing, the pair trades around 1.1676, up nearly 0.36% on the day, snapping a seven-day losing streak. The US Dollar came under sharp selling pressure after reports that the US Department of Justice had served subpoenas and threatened a criminal indictment against Federal Reserve (Fed) Chair Jerome Powell, linked to his congressional testimony on the Fed’s headquarters renovation project. The development has raised fresh concerns over the Fed’s independence, prompting investors to trim exposure to the Greenback and rotate into other major currencies, lifting several G10 FX pairs at the start of the week. From a technical standpoint, EUR/USD is showing early signs of stabilization after last week’s slide to one-month lows, although the near-term picture remains mixed. On the daily chart, the pair is holding above the 50-day and 100-day Simple Moving Averages (SMAs), which are both flattening near the 1.1670-1.1650 zone, while the 1.1700 psychological mark is capping immediate upside attempts. A decisive break above 1.1700 would shift the near-term technical structure to the upside and open the door for a move toward the 21-day SMA near 1.1730, with scope for a further advance toward the 1.1800 region, where sellers previously emerged. On the downside, a failure to hold above the 1.1650 region would keep the near-term bias tilted to the downside, exposing the 1.1600 psychological support. A deeper pullback could then bring the 1.1550 area back into focus. Momentum indicators echo the lack of a clear directional bias. The Moving Average Convergence Divergence (MACD) remains below its signal line and under the zero mark, although the contracting negative histogram suggests that bearish momentum is fading.…

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Filed under: News - @ January 12, 2026 5:23 pm