- EUR/USD remained confined in a three-day-old trading range through the early European session.
- Neutral oscillators warrant some caution for aggressive traders amid thin end-of-year liquidity.
- A sustained move beyond the 1.1350-60 hurdle is needed to support prospects for further gains.
The EUR/USD pair extended its sideways consolidative price move on Tuesday and remained confined in a narrow trading band, above the 1.1300 mark through the early European session.
Looking at the broader picture, the EUR/USD pair, so far, has struggled to capitalize on its recent bounce from sub-1.1200 levels, or the YTD low 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 breakthrough will set the stage for additional gains and push the EUR/USD pair beyond the 1.1400 round-figure mark, towards testing the next relevant hurdle near the 1.1440-45 region. The momentum could further get extended and allow bullish traders to aim back to reclaim the key 1.1500 psychological mark.
Meanwhile, neutral technical indicators on the daily chart haven't been supportive of any firm near-term direction and warrant some caution for aggressive traders. This further makes it prudent to wait for some follow-through buying beyond the mentioned barrier before positioning for a further near-term appreciating move.
On the flip side, the 1.1300 mark, closely followed by the 1.1280-75 region could protect the immediate downside ahead of the 1.1240 support zone. Some follow-through selling would be seen as a fresh trigger for bearish traders and drag the EUR/USD pair to the 1.1200 mark en-route to the YTD swing low, around the 1.1185 region.
EUR/USD 4-hour chart
