EURUSD had been steadily gaining ground since finding its feet at the March low of 1.0515. Nevertheless, the pair’s rebound appears to be fading as the 1.0928 barrier has repeatedly rejected any price advances in the past two weeks.
The short-term oscillators currently suggest that bullish forces are waning. Specifically, the MACD histogram is softening but remains above both zero and its red signal line, while the RSI is pointing downwards in the positive territory. Moreover, the price is holding above the Ichimoku cloud, hinting that the near-term bias has not turned bearish yet.
Should selling pressures persist, the pair could test the recent support of 1.0712, which overlaps with the 50-day simple moving average (SMA). Dipping beneath that zone, the price might descend towards the March low of 1.0515 before the 2023 bottom of 1.0480 comes under examination. If that barricade fails, the 1.0290 hurdle could provide downside protection.
On the flipside, bullish actions could propel the price towards the crucial rejection territory of 1.0928, which held strong three times in the past 10 days. A successful break above the fortified territory may open the door for the 11-month peak of 1.1032. Further advances could then cease at the March 2022 high of 1.1184.
In brief, EURUSD experienced a minor downside correction after failing multiple times to cross above the 1.0928 area. Hence, for the bullish scenario to materialize, the pair must initially overcome this strong barrier.
