The strong close last week took EURUSD above the 1.19 level. However, the bulls have more work to do if they want to break the downtrend that begun with the January highs. In this regard, the 1.20 zone remains the key resistance that needs to be broken to turn around the picture here.

The chart below shows another potential structure of the downward channel, which is of a slightly steeper nature (orange lines). We show this channel as a possible scenario because EURUSD broke somewhat below our original channel’s support in late March, although it quickly returned inside. The new channel lines suggest that resistance could come even slightly before 1.20. The original channel resistance indicates that 1.20 exactly is the zones we should watch. In either case, if/when EURUSD will reach 1.20, selling pressures are likely to intensify a lot!

The multiple daily lows around the 1.1860 level make the nearest support zone to the downside. The important support zone remains at the 1.17 lows and then even more so at the 1.16 area.