On Thursday, the EUR/USD pair struggles to generate any real momentum and oscillates inside a small zone during the early European session.
Technically, spot prices have so far been able to protect the 200-hour SMA. A convincing break below will indicate that the EUR/USD pair has formed a near-term top and trigger some technical selling, given the recent frequent failures around the 1.0870-1.0875 level.
After that, the further drop may continue until the 1.0750 horizontal area before reaching the next important support right in front of the 1.0700 round-figure level.
A small amount of follow-through selling will be interpreted by bearish traders as a new trigger, opening the door for an extension of the corrective retreat.
Contrarily, each intraday move-up is more likely to meet some resistance close to the 1.0830 region, and if they do, bulls may then try to retest the 1.0870–1.0875 supply region.
This is closely followed by the 1.0900 level, over which the EUR/USD pair may increase to the swing high from April 2022, located at 1.0935.
Any short-term bearish bias will be offset by some follow-through purchasing, which will also pave the way for an attempt to retake the psychological level of 1.1000.
