Bear trend momentum on the intraday and daily DMI oscillators is picking up but the lack of follow through selling on the EUR today so far may delay a deeper sell-off in the short run. 

Weakness below trend support – now resistance – at 1.0930 on Tuesday implies more softness ahead and a deeper retracement of the EUR’s Q4 gains. 

EUR/USD is holding up around the 38.2% Fibonacci support from the EUR’s late year rally (1.0875) but risks are tilted toward a drop back to the 1.0700/1.0800 range.