EUR/USD retreats to 1.1240 from 3-day highs

EUR/USD moved off daily highs and dropped back to the 1.1250 area. The pair climbed to 1.1272, after the beginning of the US session, hitting the highest level in three days. Afterward, it turned to the downside and erased most of the day’s gains.

Still limited but slightly bullish bias

The retreat from the highs found support at 1.1240. It was trading at 1.1245, up 0.25% for the day. Today’s rally of EUR/USD pushed the price above the 20-hour moving average in four-hour charts but the upside continues to be limited.

The euro is showing difficulties at levels higher than 1.1260. Since last week the pair traded on top of that level practically every day, unable to consolidate above. Despite holding a slightly bullish tone in the short-term, a confirmation above 1.1260 seems needed in order to open the door to more gains.

To the downside, the area around 1.1200 has become a key short-term barrier, that offered support on Friday and also yesterday. A break lower could expose last week lows located at 1.1140.