EURUSD has been on an impressive rally since early April, surging from lows near the 100% Fibonacci level at the 1.1500 major psychological mark all the way up to the swing high at 1.1847.

However, the pair is currently undergoing a correction from those peaks and is pulling back to a key area of interest that lines up with several Fibonacci retracement levels, potentially offering dip buyers an opportunity to join the longer-term uptrend.

Price is currently hovering around the 50% Fibonacci retracement level at 1.1673, with the highlighted area of interest spanning the zone between the 38.2% Fib at 1.1714 and the 61.8% level at 1.1632. This cluster of retracement levels, reinforced by horizontal support from previous consolidation in this region, could be enough to attract bullish momentum and put a floor under the pullback.

If any of the Fibs manage to hold as a floor, EUR/USD could resume the rally back toward the swing high at 1.1847 or even higher. A breakdown, on the other hand, could drag EURUSD back down to the swing low or lower.

The 100 SMA has crossed above the 200 SMA, confirming that the path of least resistance is to the upside and that the broader bullish bias remains intact. Both moving averages are also converging near the area of interest, adding another layer of dynamic support that could reinforce the bounce.

Stochastic has tumbled sharply into the oversold region, reflecting exhaustion among sellers. The oscillator appears to be on the verge of turning higher, which would suggest that buyers are preparing to step back in and could signal a return of bullish pressure.

RSI has also sold off aggressively and is now approaching oversold territory, with plenty of room to recover. A turn higher in the oscillator from here would add further confirmation that the correction is running out of steam and a bounce could be in the cards.