EURUSD has been trading below a descending trend line on the short-term time frame, and price is currently attempting to recover from the swing low around 1.1592. However, the pair appears to be approaching the near-term resistance that has been keeping gains in check.

A pullback to this resistance area could take place as buyers try to push higher, and the Fibonacci retracement tool shows where sellers might be waiting to defend their positions. The 38.2% Fib is located at 1.1650, which lines up with a previous area of interest that could act as a ceiling.

The 50% retracement level is at 1.1645, while a larger correction could reach the 61.8% Fib at 1.1658. This level coincides with the descending trend line resistance and could be the line in the sand for the current downtrend. A break past this zone would suggest that bullish momentum is strong enough to invalidate the bearish pattern.

On the subject of moving averages, the 100 SMA is still below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. Price is trading below both dynamic inflection points, adding to the bearish bias.

Stochastic is on the move up from the oversold region to show that buyers are attempting a return. The oscillator has room to climb before reaching the overbought area, so EURUSD could keep following suit while bullish pressure is present.

RSI is also turning higher and has plenty of ground to cover on its way up, which means that the correction could gain traction before sellers take over again.

If any of the Fibonacci levels hold as resistance, EURUSD could resume its slide to the channel bottom or set fresh lows. On the other hand, a strong break above the trend line and 61.8% Fib would confirm that a reversal is underway.