EURUSD has been in a consolidation mode after breaking below its upward sloping channel pattern. Nevertheless, the pair has realised some gains in the past few daily sessions, with the 50-day simple moving average (SMA) capping its upside.
The momentum indicators currently suggest that bullish forces have gained the upper hand. Specifically, the RSI has crossed above its 50-neutral mark, while the stochastic oscillator is ascending near its 80-overbought zone.
If buying pressures persist, initial resistance could be met at the 1.0800 resistance zone. Slicing through that region, the bulls could aim for the crucial 1.0937 region, which also provided strong resistance in April 2022. A violation of that territory might set the stage for the 11-month high of 1.1032.
On the flipside, bearish actions could send the price to test the recent support zone of 1.0663. Should that floor collapse, the pair could descend towards the March low of 1.0523 before the spotlight turns to the January bottom of 1.0480. If the pair fails to halt there, the 1.0290 barricade could provide further downside protection.
In brief, EURUSD seems to have the necessary momentum to edge higher and escape its recent rangebound pattern. For that scenario to materialise, the pair should initially pierce through the 50-day SMA.