- EUR / USD remained confined to a three-day trading range during the early days of the European session.
- A sustained move past the 1.1350-60 hurdle is needed to support the prospects for further gains.
The EUR / USD pair extended its lateralized consolidated price movement on Tuesday and remained confined to a narrow trading band, above the 1.1300 mark during the early hours of the European session.
Looking at the bigger picture, the pair has so far struggled to capitalize on its recent rebound from the yearly low below 1.1200 touched in November. The 1.1350 / 60 region has been acting as a key hurdle since the beginning of this month, which should now act as a pivotal point for short-term traders.
A convincing advance will set the stage for further gains and push the EUR / USD past the 1.1400 mark, towards the test of the next relevant hurdle near the 1.1440 / 45 region. Momentum could extend further and allow bullish traders to again aim to regain the key psychological mark of 1.1500.
Meanwhile, the neutral technical indicators on the daily chart have not supported any firm short-term direction and warrant some caution for aggressive traders. This makes it prudent to wait for some follow-up buying past the aforementioned barrier before positioning for a new short-term up move.
On the other hand, the 1.1300 mark, closely followed by the 1.1280-75 region, could protect the immediate drop ahead of the 1.1240 support zone. Some follow-up selling would be seen as a new trigger for bearish traders and would drag the EUR / USD to the 1.1200 mark en route to the swing low around the 1.1185 region.
EUR/USD 4-hour chart
Technical levels
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