EURUSD has been stuck in a clear downtrend after peaking at the 13-month high of 1.1094 in late April. In addition, the pair has sliced through crucial technical levels such as the 50-day simple moving average (SMA) and the ascending trendline that connected its higher lows since September 2022.
The short-term oscillators are endorsing this bearish near-term bias. Specifically, the MACD is retreating further below both zero and the red signal line, while the RSI has flatlined below its 50-neutral mark.
Should the decline resume, the recent low of 1.0759 could act as the first line of defense. Sliding beneath that floor, the pair could descend to form fresh lower lows, where the 1.0712 hurdle might curb further declines. A violation of that territory could turn the spotlight to the March bottom of 1.0515.
On the flipside, if the price reverses higher, the 1.0900 psychological mark, which coincides with the 50-day SMA, could prove to be the first obstacle for buyers to clear. Breaking above this zone, the price may advance towards the February peak of 1.1032. Failing to halt there, the pair could then challenge the 13-month high of 1.1094.
In brief, EURUSD has been constantly losing ground after failing to generate a fresh higher high in late April. Nevertheless, the price is currently trading near its lower Bollinger band, indicating that the market could have reached oversold conditions and hinting at a potential upside correction.