EURUSD had been steadily gaining ground after finding its feet at the March low of 1.0515. Nevertheless, the pair encountered strong resistance and pared a part of its gains before the 50-day simple moving average (SMA) curbed further retreats.
The momentum indicators currently suggest that the bullish near-term bias is waning. Specifically, the stochastic oscillator is descending after posting a bearish cross, while the MACD histogram is softening but remains above both zero and its red signal line.
If the negative tendency persists, the price could dive lower to test the 1.0712 congested region that includes the 50-day SMA and the lower boundary of the Ichimoku cloud. Violating that zone, the pair could descend towards the March low of 1.0515 before the spotlight turns to the 2023 bottom of 1.0480. Even lower, the 1.0290 hurdle could provide downside protection.
On the flipside, bullish actions could propel the price towards the recent rejection territory of 1.0928. A successful break above that region might pave the way for the 2023 peak of 1.1032, which is also an eleven-month high. Failing to halt there, the price could then test the March 2022 peak of 1.1184.
In brief, EURUSD corrected to the downside after its latest advance got rejected at the 1.0928 area but the 50-day SMA acted as a strong floor. If that barricade fails, the pair’s retreat is likely to accelerate.