• The pair failed to capitalize on its early uptick and once again started losing steam from the 1.1320 region, marking 50% Fibonacci retracement level of the 1.1448-1.1184 recent downfall.
• The mentioned barrier coincides with the top end of a short-term ascending trend-channel formation, extending from monthly lows, and should act as a key trigger for short-term bullish traders.
• Technical indicators on hourly/daily charts maintained their positive bias and yet to move into the overbought territory, supporting prospects for an eventual near-term bullish breakout.
• Traders, however, are likely to wait for a convincing break through the mentioned barrier before positioning for a further near-term appreciating move towards reclaiming the 1.1400 handle.
• Alternatively, rejection from the current resistance area and a subsequent slide below the 1.1300-1.1290 region might accelerate the fall back towards the trend-channel support near mid-1.1200s.
• A follow-through weakness would invalidate the trend-channel and turn the pair vulnerable to resume its prior/well-established bearish trend and aim towards challenging the 1.1200 mark.
EUR/USD 4-hourly chart