Tensions around the EU’s vaccine supply have put a strain on the euro as traders rush into a safer Japanese yen.
The pair has broken below the 30-day moving average, a bearish movement that could trigger an extended consolidation if not an outright reversal.
On the hourly chart, after being oversold, price action is making an attempt to rebound from 128.20. 129.20 is a key area of congestion as it coincides with the falling trendline.
Needless to say, traders would try to sell into strength as the pair recovers.