EURUSD broke past a key resistance zone marked around the 1.1600 major psychological handle, signaling that the uptrend could be gaining traction. However, price appears to be pulling back to this broken resistance, now turned support, which could attract more buyers looking to join the climb.

The blue shaded area coincides with the 50% and 61.8% Fibonacci retracement levels at 1.1637 and 1.16157 respectively, drawn from the recent swing low at 1.1545 to the swing high at 1.1728. These technical zones could be enough to keep losses in check and spur a bounce back to the highs or higher.

If the broken resistance zone and Fibonacci levels hold as a floor, EURUSD could resume its rally and potentially target the psychological 1.18000 level next. On the other hand, a break below these support areas could suggest weakening bullish momentum and lead to a deeper correction toward the swing low.

The 100 SMA is below the 200 SMA on the short-term time frame, suggesting that the path of least resistance was previously to the downside. However, price has broken above both moving averages, indicating a potential shift in momentum. The 200 SMA appears to be flattening out, hinting that bullish pressure could be building.

Stochastic is pulling up from the oversold region to reflect a return in buying interest. The oscillator has plenty of room to climb before reaching the overbought area, so buyers could stay in control for much longer and take EURUSD back to the swing high or establish fresh highs above 1.17288.

RSI is also turning higher from the middle ground, confirming that bullish momentum is picking up. As long as the oscillator keeps heading north, price could keep following suit.

EURUSD could take cues from upcoming economic data releases and central bank commentary, as traders assess the monetary policy outlook for both regions, while the US government shutdown could put further weight on the dollar.