Short-term bullish bias
Key levels: downside: 1.1220/ upside: 1.1280
The euro bounced off the daily support of 1.1180 with a strong momentum, which suggests short-term sellers have been abandoning ship. New buying pressure combined with short-covering is likely to push the price towards the daily moving averages.
The RSI divergence where the price fell to a new low on the 4H chart but the indicator showed a higher low is a sign that the downside pressure has eased off. The break of the 1.1250 resistance is a confirmation that buyers are taking control of the price action. On the hourly chart, the price has achieved a series of new highs and the bullish MA cross indicates a turn in sentiment. However, a pullback is not unlikely as the RSI shot above the over-bought area.
In case of a retracement, the price could test the support zone around 1.1220. An extended rally may send the price to 1.1280.