We see that although EUR/USD climbed above the A -B declining resistance line, the D -C resistance zone (created by the 38.2% Fibonacci retracement based on the Oct-Dec decline, the barrier of 1.2500 and the Dec high) stopped further improvement, triggering a sharp pullback. With this downswing, the exchange rate dropped below the blue line, invalidating earlier breakout. This is a negative signal, which suggests further deterioration and a test of Tuesday’s low of 1.2291 in the near future.