EUR/USD may continue to trend higher, with "round number" resistance at 1.20 and the September high at 1.2011 are near-term targets for the pair.

The EUR/USD pair is consolidating with a limited bearish potential. In the 4-hour chart, EUR/USD is trading in a narrowing ascending triangle pattern in the past few days. The uptrend support has been holding since early November yet the recent rejection just under 1.194 creates the barrier level of this pattern.

On the downside, the formation of bearish divergence ( MACD) suggest a bearish breakout is around the corner. Trading for a bearish move at this time is irrelevant since price is consolidating. If a breakout below the ascending trendline is seen, the trend reversal from MACD bearish divergence is confirmed. This would probably ignite an impulsive downside push back towards 1.1830-1.180 region.

Technical indicators in the mentioned timeframe have retreated from daily highs but remain within positive levels and lacking bearish strength. On the flip side, the bulls would have better chances on renewed demand above the 1.1920 resistance level.