Short-term bullish bias
Key levels: downside: 1.1250 / upside: 1.1310
Even though the pair has returned to the bearish side after the breach of the November low of 1.1220, the price has room for a pullback which would provide opportunities for short-term trading. The 20-day moving average is the immediate resistance where we could see strong selling pressures.
On the 4H chart, the price broke above both MAs while the RSI indicator has bottomed out of the over-sold area then achieved a new high. This is a strong indication that the buyers have gained the upper hand. On the hourly chart, the price has found support along the MAs. The RSI is yet to penetrate the over-bought zone, the bullish trend is likely to extend as long as buyers keep key levels in check.
The 4H resistance of 1.1310 would be a tough nut to crack with stiff selling pressures awaiting. The immediate support is 1.1250 for the current retracement.