1.1600 is a key defining level
Overnight lows stalled after buyers found support from the 23 August low @ 1.1531 and since then it's been a steady recovery following the drop during European trading yesterday. For now, staying above 1.1600 will be a key priority for buyers and for sellers, staying below will be a good platform to build on for a move lower again.
But the key near-term levels are of course the 100 and 200-hour MAs at 1.1622 and 1.1641 respectively. As long as price remains below that, bias still remains bearish. However, if sellers cannot hold below 1.1600 then I'd say that things are a little iffy still.
Moreover, price has moved back above the 200-bar MA (blue line) on the 4-hourly chart @ 1.1580. And that isn't an encouraging sign having broken below it just yesterday. Currently, there's additional support in the region from the 100-bar MA (red line) @ 1.1550 as well.
While breaking below the two key hourly moving averages is a good start, there is no firm follow through just yet from sellers. And with price lingering around 1.1600 still, it keeps buyers interested to "stay in the game".
I would say price is trading at the mid-point of the bias range currently, so it's fair game right now. As for market catalysts, Asian equities are mostly lower on the day while futures are looking tepid as well - but there is no evident risk off moves in the market just yet. Though, that will be something to watch out for in the sessions ahead.
Apart from that, there isn't much else to go on as Italian budget worries are starting to calm down - then again, it's hardly impacting the euro these days.
