The EUR/USD found support this week at 1.0806. It has been rallying as the euro can be seen resilient across the board. However, based on the fundamental backdrop and the technical outlook in the daily chart, I am still bearish on EUR/USD as long as it is under 1.11 - as noted in the previous update. EUR/USD Daily Chart 7/23(click to enlarge) The daily chart shows a neutral market since March. Considering that the previous trend was bearish and that price has held under the 200-day simple moving average (SMA) throughout the multi-month consolidation, we should consider the pair at most neutral-bearish, if not bearish. The failure to push above 1.1466 in June and the subsequent dip is telling me that the pair is ready to continue its downtrend, or at least wants to test the lows on the year in the 1.0460-1.0520 area. EUR/USD 4H Chart 7/23 (click to enlarge)The 4H chart shows a rebound from 1.0806 in what looks like an abc correction. If the prevailing downtrend is still the primary mode, we should look for resistance around 1.11, which involves the 200-period SMA and a few other resistance pivots. Also, look for the RSI to top off around 70, preferably with a bearish divergence against price action. Then, we can expect a dip towards at leastthe 1.0875-1.09 area if not the 1.0806 low.