For well over a month now, the story in EUR/USD is that when the currency pair tries to pick itself up, sellers are seemingly waiting just around the corner to knock it back down again. And with the latest shove lower this week, you have to wonder just how much longer buyers can keep defending the floor at this rate.The daily chart paints a rather miserable picture for buyers. Since peaking just above 1.1700 in August, it has been one-way traffic for EUR/USD as the pair entered freefall to hit a low near 1.1100 in October. More importantly, any ecent recovery attempts have repeatedly stalled around the 23.6 Fib retracement level of that very swing lower at 1.1254. That pretty much underscores the mood that sellers are showing little appetite to surrender that territory.After being rejected once again yesterday, we are now seeing price action hover back to around 1.1150. And that once again draws in the 1.1100 level, with that looking rather vulnerable to a downside test after the dollar made a stirring comeback following the hotter-than-expected US CPI report yesterday.The weekly chart exemplifies why the 1.1100 level is an important one to watch. The 200-week moving average (blue line) sits nearby around 1.1109 and provides an important line of defence for buyers, alongside the 50.0 Fib retracement level at 1.1129. A firm break below this support region would be a rather ominous development, potentially opening up a move towards 1.1000 next and then the 61.8 Fib retracement level at 1.0905.That being said, can the euro still pull a rabbit out of the hat?Well, the odds aren't exactly working in favour of the single currency I would say. Yesterday's US inflation data reinforces expectations that the Fed will have to remain on a more hawkish path, with the debate on another rate hike in December more or less settled. As for Europe, flagging growth conditions and fiscal risks arising from France are complicating the picture for the ECB in trying to make more aggressive moves going into next year.Alongside the fact that the Fed's policy rate remains well above the ECB's, higher yields in the US will keep the dollar more attractive and thus making it more difficult for EUR/USD to stage a convincing recovery.However, there is perhaps one little counterargument that might help the euro out. And that is positioning. According to the latest CFTC data, leveraged funds have built their largest net short euro position since early 2020 as of last week.As such, with bearish bets already getting so crowded, any further easing in energy prices and/or improving fiscal sentiment in Europe could very well trigger a short squeeze - even without any dramatic improvement in the euro's fundamentals. So, there is that to keep in mind at least.Looking to the week ahead, the US PPI data on Friday will be one to watch before we get to US retail sales and the Fed minutes next week.Circling back to the charts, buyers will have to try and secure another push back above 1.1200 to try and reclaim some semblance of control to start with. However, breaking above 1.1254 is what is necessary to give any recovery some added credibility.Until then, sellers will still hold the upper hand at the balance. And if the 1.1100 level finally gives way, things are going to get much worse for the euro before they get better. This article was written by Justin Low at investinglive.com.