EURUSD has been experiencing a downside correction after peaking at the 13-month high of 1.1094 in late April. In addition, the pair sliced through both its 50-day simple moving average (SMA) and the ascending trendline that connected its lows since September 2022, while its latest attempts for recovery have been repelled just shy of the 1.0800 region.
The momentum indicators are reflecting a cautiously bullish near-term bias. Specifically, the stochastic oscillator is ascending steeply near its 80-overbought zone, while the RSI is battling with its 50-neutral mark. Nevertheless, the price action remains below the Ichimoku cloud, endorsing a broader bearish short-term picture.
If the positive momentum intensifies further, the 1.0790 barrier could prove to be the first obstacle for buyers to clear. Surpassing that zone, the price could advance towards the 50-day SMA, currently at 1.0880. Even higher, the February peak of 1.1032 might fend off any upside moves before the 13-month high of 1.1094 gets tested.
Alternatively, bearish actions could send the price to test the recent low of 1.0633. Diving lower, the pair may encounter support at the March double-bottom region of 1.0515. A violation of that territory could pave the way for the 2023 low of 1.0480 observed in January.
In brief, despite managing to halt its retreat, EURUSD seems to be struggling to recover some of its lost ground. For that to happen, the pair needs to decisively cross above its 50-day SMA.