The struggle of EUR/USD to free from the downward channel formed early November intensified after Friday's weak US jobs data, but the pair is finding it really difficult to break above the key long-term support-turned resistance of 1.3422.

Uncertainties surrounding the euro bond issue is hurting the single currency, although it managed to stay higher from the previous close, mostly helped by Bernanke's recent remarks about the likelihood of expanding the $600 billion asset buyback by the Federal Reserve.

Obama's plans to extend a Bush-time tax holiday scheme has also helped the greenback, traders said.

As of 9:31 GMT, EUR/USD was at 1.3357, from Monday's close of 1.3306, and the pair was struck between its 50-day SMA near 1.32 and 100-day SMA of 1.3380 on the 4-hour chart.

Above the key 1.3422, the pair may target 1.3500, as suggested by its 200-day exponential moving average, before heading further north to 1.3697, another long-term support-turned resistance for EUR/USD.

The struggle of EUR/USD to free from the downward channel formed early November intensified after Friday's weak US jobs data, but the pair is finding it really difficult to break above the key long-term support-turned resistance of 1.3422.
Federal reserve