EUR/USD has staged a modest recovery early Wednesday following Tuesday's sharp decline but the pair could find it difficult to continue to edge higher in the near-term. As FXStreet’s Eren Sengezer notes, a drop below 1.1320 could spell trouble for the euro.

1.1350 aligns as the first resistance

“In case a four-hour candle closes below 1.1320, additional losses toward 1.1300 (psychological level) and 1.1270 (the starting point of the uptrend coming from early January).”

“On the upside, 1.1350 (100-period SMA, Fibonacci 61.8% retracement) aligns as the first resistance ahead of 1.1380 (Fibonacci 50% retracement) and 1.1400 (Fibonacci 38.2% retracement).”