Technically, the pair last week had confirmed a bearish break below a short-term descending trend-channel. The same was further reaffirmed by a follow through weakness below an important support near the 1.3100 handle, marked by 61.8% Fibonacci retracement level of 1.2774-1.3657 recent upswing. Hence, the current pull-back might still be categorized as a short-covering bounce from near-term oversold conditions and seems more likely to fizzle out near 1.3135-40 horizontal resistance. However, a strong follow through buying interest has the potential to continue lifting the pair back towards reclaiming the 1.3200 handle.
On the flip side, weakness back below 1.3075 level could drag the pair back towards 1.3050 intermediate support, which if broken would turn the pair vulnerable to accelerate the fall towards the key 1.30 psychological mark. The downward trajectory could further get extended towards its next support near the 1.2965-60 region.