EURUSD rallied to 1.2150 last week but then sold off on Friday and closed the week at 1.2020. A sharp sell-off on the last day of April after such a stable rally during most of the month is sure to discourage some of the bulls.

The technicals, however, aren’t giving a clear directional signal. The price has broken above the channel trendline and above the pivotal 1.20 resistance zone, but then failed miserably to hold above 1.21. It seems this could easily turn into a sideways range, e.g., between 1.20 or 1.19 as support and 1.22 or 1.23 as resistance.

The 1.20 zone still remains important. A break below will put the bears back in charge, but the technicals will be leaned toward the bullish side as long as 1.20 holds.