EUR/USD seesaws near 1.0600, snapping a two-day downtrend in the early European morning.
In the technical overview, the EUR/USD pair has been scaling higher along an upward-sloping channel since the beginning of this month. This points to a well-established short-term positive trend.
That said, oscillators on the daily charts have been losing traction. This, along with last week’s failure to find acceptance above the 1.0700 mark, despite the hawkish ECB, could be seen as the first sign of possible bullish exhaustion.
It, however, will be prudent to wait for a convincing break below the ascending trend-channel support, currently around the 1.0575 region, before positioning for any meaningful corrective slide. The EUR/USD pair might then accelerate the fall towards the 1.0500 psychological mark. Some follow-through selling below the latter might expose the 1.0400 horizontal resistance breakpoint and a technically significant 200-day SMA, currently near the 1.0345-1.0340 zone.
On the flip side, the 1.0645-1.0650 region now seems to act as an immediate hurdle ahead of the 1.0680 area. This is closely followed by the 1.0700 round figure, above which the EUR/USD pair could aim to retest the post-ECB swing high, around the 1.0735 zone. The latter coincides with the top boundary of the channel, which if cleared will be seen as a fresh trigger for bulls.
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