EUR/USD: pair seems unable to break through 1.11, what's in the cards in the short term?

After rising sharply on Monday and then consolidating on Tuesday, the EUR/USD is threatening to correct, after approaching the psychological threshold of 1.11.

However, as the euro had exhausted much of its immediate bullish potential on Monday, these figures were not enough to cause a break above the psychological threshold of 1.11 which blocked the last bullish wave.

And as is often the case in trading, "that which can't go up will eventually fall", and the pair lost some ground.

And although this daily decline remains moderate for the moment, it threatens to send the EUR/USD back below the 100-day moving average currently at 1.1060. A breach below this threshold would constitute a clearly bearish signal, which would highlight the next support level at 1.1050, ahead of 1.10 and last week's low at 1.0980.

On the upside, only a confirmed break above 1.11 would validate the dominance of sellers and allow to target the 200-day moving average at 1.1160, the resistance level at 1.1180, and the psychological threshold of 1.12.

Currently, the EUR/USD pair is trading around 1.1072 on the forex.

Daily EUR/USD chart