EUR/USD Technical Analysis: Flirting with daily tops, around 1.1075 region

• EUR/USD regains some traction and recovers a part of the post-NFP slide.
• The upside is likely to remain capped ahead of the FOMC on Wednesday.

The EUR/USD pair built on its intraday positive move and is currently placed near the top end of its daily trading range, around the 1.1075 region. The post-NFP slide showed some resilience below the 200-hour SMA, with some renewed USD selling bias helping the pair to regain some positive traction on the first day of a new trading week.

A sustained move back above 38.2% Fibonacci level of the 1.0981-1.1116 recent positive move was seen as a key trigger for intraday bullish traders. Any subsequent move beyond the 1.1085 area (23.6% Fibo.) has the potential to lift the pair further beyond the 1.1100 handle, back towards testing last week's swing high – around the 1.1115 region.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and have again started gaining positive momentum on hourly charts, supporting prospects for additional gains. However, further gains are likely to remain capped ahead of this week's key event risk – the highly anticipated FOMC monetary policy update on Wednesday.

On the downside, the 50% Fibo. level, around mid-1.1000s, now seems to have emerged as immediate support. Failure to defend the mentioned support might negate the constructive outlook and prompt some aggressive technical selling, which might accelerate the slide and drag the pair back towards challenging the key 1.10 psychological mark.

EUR/USD 1-hourly chart

EUR/USD