• The pair has managed to stage a modest recovery from the mentioned trend-channel support, albeit might struggle to make it through 50-hour EMA resistance.
• The mentioned hurdle coincides with the top end of the ascending trend-channel and might now act as a key pivotal point for any subsequent recovery.
Technical indicators on the 1-hourly chart have just started catching up with the recovery move but maintained their bearish bias on 4-hourly/daily charts, suggesting that the near-term selling pressure might still be far from over.
Hence, it would be prudent to wait for a convincing break through the said confluence resistance before traders start positioning for any further short-covering move back towards reclaiming the 1.1200 round figure mark.
Alternatively, fresh rejection from the current resistance zone might turn the pair vulnerable to challenge the trend-channel support, currently near the 1.1140 region before dropping to yearly lows, around the 1.1110 area.
EUR/USD 1-hourly chart