• EUR/USD treads water after probing two-day uptrend, sidelined of late.
• Megaphone chart formation, steady RSI (14) favors continuation of sideways performance.
• 200-SMA adds to the upside filters within one-week-old megaphone trend-widening pattern.

EUR/USD remains mostly steady around 1.0740 as traders await more clues to defend late Tuesday’s bearish bias amid Wednesday’s sluggish hours.

The major currency pair bounced off 1.0706 the previous day before reversing from the weekly high surrounding 1.0800. In doing so, the quote remained inside a one-week-long megaphone chart formation, a trend-widening pattern.

In addition to the megaphone chart formation, the steady line of the RSI (14) and bullish MACD signals also favor the odds of the EUR/USD pair’s further sideways grind, with an expanding range.

That said, the 50% Fibonacci retracement level of the pair’s January-February moves and the 200-Simple Moving Average (SMA), respectively near 1.0760 and 1.0780, restrict the short-term upside of the EUR/USD pair.

Following that, the stated megaphone’s top line, close to 1.0810 by the press time, will be crucial to watch for the pair buyers.

On the contrary, a downside break of the 61.8% Fibonacci retracement, also known as the golden ratio, near 1.0690, becomes necessary for the EUR/USD bear’s conviction. Even so, the lower line of the aforementioned trend-widening pattern, close to 1.0655, could challenge the quote’s downside.

In a case where EUR/USD remains bearish past 1.0655, the odds of witnessing a gradual south toward the previous monthly low near 1.0480 can’t be ruled out.

EUR/USD: Four-hour chart

Trend: Limited recovery expected