EUR/USD Technical Analysis: Trims a part of early strong gains to 4-month tops

• EUR/USD stalls its strong intraday rally near 1.1200 round-figure mark.
• Acceptance above 200-DMA support prospects for additional gains.

The EUR/USD pair maintained its strong bid tone through the early European session on Friday, albeit has retreated around 20-25 pips from the 1.1200 handle, or four-month tops.

Extremely overbought conditions on hourly charts seemed to be the only factor that kept a lid on any strong follow-through, rather prompted some profit-taking at higher levels.

Given that the pair has already found acceptance above the very important 200-day SMA, the set-up seems tilted in favour of bullish traders and support prospects for additional gains.

This coupled with the fact that the pair's recent recovery has been along an ascending trend-channel formation on the daily chart adds credence to the near-term constructive set-up.

Some follow-through buying beyond the 1.1200 mark will reaffirm the bullish outlook and lift the pair further towards challenging the ascending channel resistance, near the 1.1255-60 region.

On the flip side, immediate support is pegged near mid-1.1100s (200-DMA), which if broken might prompt some long-unwinding trade and accelerate the slide back towards the 1.1100 handle.

EUR/USD daily chart