The euro’s attempt to post gains were short-lived as price action is down close to 0.5% intraday.
The declines came after Monday’s session saw prices rising sharply. However, failure to breakout above 1.1347 sent the euro lower for the most part.
Prices are now trading near the familiar support area of 1.2616. If the support fails and we see a lower close, this would confirm a correction.
The next main support is at 1.1132 where the euro is likely to find buyers.
In the near term, given that prices are being rejected at 1.2616, we could expect to see some sideways consolidation happening.