• EUR/USD’s pullback from 1.1371 to 1.1275 has weakened the immediate bull bias. 
• The pair, however, is still holding above the 200-hour SMA. 

EUR/USD is down but not out. The pair is trading in the red near 1.1275 at press time, having faced rejection at a one-month high of 1.1371 on Thursday.

The pair’s failure to keep gains above the key resistance at 1.1349 (lower high created on June 23) has weakened the immediate bullish case put forward by the descending triangle breakout confirmed earlier this week.

However, the bias would turn bearish only if buyers fail to defend the 200-hour simple moving average (SMA), currently at 1.1271. The pair defended that support early Friday. So far, however, a stronger bounce has remained elusive.

Acceptance under the 200-hour SMA would invalidate the higher lows setup on the hourly chart and shift risk in favor of a decline to 1.12. Alternatively, a strong bounce from the key average, if followed by, a quick break above 1.1349, would put the focus back on the recent high of 1.1422.

Hourly chart

Trend: Neutral

Technical levels