EUR/USD Technical Analysis: 200-hour SMA/50% Fibo. confluence hurdle capping the up-move

   •  The pair struggled to build on the overnight up-move and now seems to have faced rejection near a confluence resistance, comprising of 200-hour SMA and 50% Fibonacci retracement level of last week's downfall.

   •  Technical indicators on the 1-hourly chart have been losing positive momentum and maintained their bearish bias on 4-hourly/daily charts, clearly indicating that the near-term downtrend might still be far from over.

   •  A follow-through weakness below 38.2% Fibonacci retracement level support, around the 1.1335-30 region, will reinforce the negative outlook and accelerate the slide back towards challenging the 1.1300 mark.

   •  The mentioned handle coincides with 23.6% Fibonacci retracement level and should act as an important support ahead of the latest FOMC monetary policy update, scheduled to be announced on Wednesday.

EUR/USD 1-hourly chart