EUR/USD Could Trade Downwards

On Monday, the EUR/USD currency pair pierced the support level—the weekly S1 at 1.2070.

Given that the exchange rate is pressured by the 55– and 100-hour moving averages near 1.2100, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the weekly S2, is located at 1.2002.

In the meantime, it is unlikely that bulls could prevail in the market in the short term, and the currency pair could exceed the resistance formed by the 200-hour moving average and the weekly PP near 1.2130.