EURUSD could be done with its long-term slide, as the pair formed a double bottom on its daily chart. Price is still inching towards the neckline resistance at 1.0500, and a break higher could confirm the reversal.

The 100 SMA is below the 200 SMA, however, so the path of least resistance is to the downside. The gap between the indicators is even widening to reflect strengthening selling pressure. Price is also below both moving averages, so these could hold as dynamic resistance, particularly the 100 SMA just above the neckline.

Stochastic is still on the move up to show that bullish momentum is in play, and the oscillator has a bit of room to climb before reaching the overbought zone. Turning lower, however, could signal that sellers are returning and could take EURUSD back to the lows at 1.0200.

RSI has more room to climb before reaching the overbought area to reflect exhaustion among buyers, so price could keep following suit while buyers are in control. A break above the neckline could set off a rally that’s approximately 300 pips, possibly taking EURUSD to the 1.0800 mark next.

EURUSD is drawing support from a weaker dollar thanks to dovish Fed rhetoric clouding the recent inflation upside surprises. Traders are focusing on components pointing to a weaker core PCE price index, which is the Fed’s preferred inflation measure, as a downside surprise could put the Fed back on its easing path.

Meanwhile, data points from the eurozone have been mixed and ECB officials continue to caution about headwinds from global trade uncertainties. Upside surprises from US data could still prop the dollar higher, along with risk-off flows coming from additional tariffs announcements from the Trump administration. US retail sales data is up for release next, possibly triggering additional USD volatility.