• After repeated failures near the 1.1320-30 region, the pair came under some renewed selling pressure on Thursday and tumbled to fresh weekly on dismal Euro-zone PMI prints.
• The negative momentum dragged the pair below 200-hour SMA and the lower end of a short-term ascending trend-channel formation, confirming a near-term bearish breakdown.
• Oscillators have been gaining negative traction on 4-hourly/daily charts but are already pointing to slightly oversold conditions on the 1-hourly charts, warranting some consolidation.
• However, the set-up now seems to have turned firmly in favor of bearish traders and hence, a follow-through weakness, towards testing the 1.1200 mark, remains a distinct possibility.
EUR/USD 1-hourly chart