EURUSD has been on a steep uptrend after finding its feet at the 20-year low of 0.9535, storming to a fresh 10-month high in early February. However, the pair experienced a moderate downside correction, with the price diving below its 50-day simple moving average (SMA) in the last couple of daily sessions.
The momentum indicators currently suggest that bearish forces have gained the upper hand. Specifically, the RSI has flatlined beneath its 50-neutral mark, while the MACD histogram is weakening further below both zero and its red signal line.
Should selling pressures persist, the pair could test its recent support region of 1.0612. Sliding beneath that floor, further declines could cease at the January bottom of 1.0480. Even lower, a violation of the November support of 1.0290, which lies very close to the 200-day SMA, might shift the technical picture back to bearish.
On the flipside, if buyers re-emerge and manage to push the price above its 50-day SMA, initial resistance could be met at the 1.0800 hurdle. Conquering this barricade, the bulls could aim for the crucial 1.0937 region, which also provided strong resistance in April 2022. A break above that zone could open the door for the 10-month peak of 1.1032.
In brief, EURUSD has been under some selling pressure lately, dropping beneath its 50-day SMA for the first time since early November. Therefore, the downside move could extend in the case that the pair fails to reclaim this crucial barrier.
