With markets in a more upbeat mood compared to yesterday, the pair hit a high of 109.71 earlier but backed off as price tested selling pressures from the near-term trendline resistance as well as the region near the 100-hour MA (red line) @ 109.75.
As it stands, sellers continue to maintain near-term control so the near-term levels above will be key in defining the bias in the pair in trading today. Further resistance beyond that is seen around 110.00, where there are light offers noted before the 200-hour MA (blue line) @ 110.34 comes into the picture.
Unless more positive headlines come about with regards to the US-China trade situation, I'd be more inclined to keep fading the rallies on intraday moves in the pair.
As for downside levels to eye, there is some mild support around 109.50 but the key area will be nearer towards the 109.00 handle where notable bids rest at the figure level. If sellers break below that, price should move swiftly towards a test of 108.50 next.
But for now, the main focus is on risk sentiment and markets are still slightly more optimistic as we begin the session. I reckon we'll have to wait on more Trump tweets or US traders later to confirm any follow through on the current mood. As such, the near-term resistance levels pointed out above should prevail in the European morning.