Consolidation Range: The EUR/USD established a consolidation range last week between1.3403 and 1.3255, with possible support down to a 1.3246 pivot. As you can see, this is a sideways market in the short-term after a bullish market that actually started back in July 2012. Note the 4H RSI reading stuck between 40 and 60, a sign that EUR/USD lacks direction. However, you note the bullish bias with price above the 4H 200-SMA.
Breakout: As a trader, a breakout in the direction of the trend (bullish) would be preferred. A rally above 1.3405 for example could revive the bullish outlook that has the 2012 high of 1.3485 in sight. A breakout target using the width of the range would project to (1.3403+(1.3403-1.3255), which is about 1.3550. A way a trader could show this bias in following trends is to trade this bullish breakout with more confidence, and larger position size than a break to the downside if EUR/USD slides below 1.3445 for example.
Also in this bearish scenario, there is the 1.32 psychological handle at 50% retracement, and more aggressively the 61.8% retracement at 1.3152, which was also the December consolidation support, as targets/supports. Only a break below 1.3150 should open up further bearish outlook, after which stronger position size could be added to the downside with more evidence of a bearish trend (reversal against July-January rally) development.