EURUSD continues to exhibit a lack of directional impetus, drifting between the 50-day simple moving average (SMA) at 1.1310 and the mid-Bollinger band at 1.1345. The falling SMAs are defending the broader downtrend that started from the 1.2266 peak.
Currently, the Bollinger bands are suggesting feeble volatility in the pair confined to the lower and upper Bollinger bands of 1.1247 and 1.1442 respectively. Furthermore, the short-term oscillators are indicating that guiding forces are absent, confirming that directional momentum has diminished. The MACD and RSI are flirting with their neutral thresholds at zero and 50 respectively, while the stochastic %K line, which is in oversold territory, is not signalling a definitive directional charge.
If sellers drive the price beneath the 50-day SMA at 1.1310, a reinforced zone of support between the nearby 1.1271 and 1.1234 lows could impede a price drop. However, dipping lower, the price may then encounter the 1.1146-1.1200 support foundation, extending back to the end of March 2020. Should this base, which includes the 17-month trough of 1.1185, fail to mute negative tendencies from snowballing, the price could dive for the 1.0986-1.1017 support border, which has held from the April-May 2020 period.
In the positive scenario, buyers would need to step above the mid-Bollinger band at 1.1345 and over the 1.1400 handle to tackle the key resistance zone between the upper Bollinger band at 1.1442 and the 100-day SMA at 1.1466. Should profound upside pressures unfold beyond the 1.1482 high and conquer the 1.1500-1.1553 critical resistance obstacle, the 1.1608 barrier could come into play.
Summarizing, EURUSD maintains a neutral-to-bearish tone below the 100-day SMA and the 1.1500-1.1553 resistance border. That said, for the sideways trajectory in the pair to dissolve, the price would need to start with a break either below the 1.1234-1.1271 area or above the 1.1400 hurdle.
