- EUR/USD fails to extend the previous recovery.
- 200-hour EMA, three-week-old rising trend line questions the latest declines.
- Bearish MACD, failure to stay strong beyond 1.1200 keep the sellers hopeful.
EUR/USD declines to 1.1135 during the initial Asian session on Tuesday. The pair has gradually been declining since last Thursday. However, 200-hour Exponential Moving Average (EMA) and an upward sloping trend line since November 29 could question sellers.
In doing so, the 1.1110/15 area becomes the key to watch. If the quote slips below the key technical indicators’ confluence, a fresh downpour to 61.8% Fibonacci retracement of late-November to early-December, at 1.1065, can’t be denied.
Also supporting the sellers are bearish signals from the 12-bar Moving Average Convergence and Divergence (MACD).
Meanwhile, a three-day-old descending trend line and 23.6% Fibonacci retracement limits the quote’s immediate upside around 1.1150.
Also questioning buyers is the 1.1200 round-figure that holds the key to August month top surrounding 1.1250.
EUR/USD hourly chart
Trend: Pullback expected
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