EUR/USD Forecast: Chances Of Making A Good Comeback Above 1.1615 Hurdle

The EUR/USD pair finally broke down of its post-ECB consolidative range and tumbled to nearly 4-month lows on Tuesday. The pair remained under pressure despite this week's better-than-expected Euro-zone economic data, including yesterday's upbeat retail sales for September, and was being weighed down by resurgent US Dollar demand. However, news report that Senate Republicans might delay the corporate tax cuts by a year interrupted broad based USD rally and helped the pair to bounce off lows. 

The pair extended overnight rebound and was looking to build on its up-move beyond the 1.1600 handle during the Asian session on Wednesday. With an empty economic docket, investors would continue to monitor progress over the US tax bill and broader market sentiment around the greenback acting as an exclusive driver of the pair's movement on Wednesday. 

From a technical perspective, a follow-through momentum beyond 1.1615 horizontal resistance would make a good chance for additional recovery bounce. Above the mentioned hurdle, a bout of short-covering is likely to accelerate the up-move toward a broken support, now turned strong barrier, near the 1.1655-65 region, which, if conquered, would be bullish for the pair in the near-term.

Conversely, if the downtrend continues, the next big target for the bears would be the key 1.15 psychological mark. The bearish momentum could further get extended toward mid-1.1400s, marking 100 percent Fibonacci expansion level of 1.2092-1.1669 downfall and subsequent rebound.