• EURUSD trims recent gains ahead of US jobs data

• Short-term downward trajectory stays intact

• Bulls need a clear bounce above 1.0800

EURUSD could not sustain gains above the 1.0800 number and its 20- and 200-period exponential moving averages (EMAs) in the four-hour chart, staying within the tight bearish channel, which followed November’s peak of 1.1016.

The latest pullback dampened hopes for a bullish reversal in the very short-term picture ahead of the all-important US nonfarm payrolls report. Adding to the risks is the falling RSI, which failed to cross above its 50 neutral mark, suggesting the bears could dominate the market in the short term.

If December’s base of 1.0750 collapses, the price might seek shelter around the 50% Fibonacci retracement level of the October-November upleg at 1.0730. The upward-sloping line from October’s lows is adding extra credence to the region. However, if sellers win the battle there too, the decline could continue towards the channel’s lower band at 1.0689. The 61.8% Fibonacci mark of 1.0665 could be the next destination.

On the upside, the bulls will fight for a clear close above the channel and the 38.2% Fibonacci around 1.0800. Such an achievement might boost buying appetite towards the 50-period EMA at 1.0835. Additional increases from there could stabilize near the 23.6% Fibonacci of 1.0882, while an extension above the key ascending line from October at 1.0920 might shift the attention back to November’s highs.

In brief, EURUSD retains a downward trajectory in the short-term picture, with traders waiting for a move above 1.0800 or below 1.0750 to drive the market accordingly.