- EUR / USD falls to 3-day lows in the 1.2070 / 65 zone.
- The 2021 lows near 1.2050 offer decent support so far.
The EUR/USD starts the week lower and moves back to the area below 1.2100.
A further drop is expected to meet decent containment in the 1.2050 region, where the yearly lows are found so far (Jan 18). A deeper pullback carries the potential to challenge the psychological support at 1.20, although a move further south of this level is not favored on the short-term horizon. Below 1.2000 is a Fibonacci level at 1.1976.
In the bigger picture, the constructive stance of the EUR / USD remains unchanged while it is above the critical 200-day SMA, today at 1.1665.
Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should support the continuation of the current long-term trend.
Daily chart
Technical levels
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