EURUSD continued to climb higher last week, though the pace has slowed. As can be seen from the daily chart, instead of progressing firmly higher, the pair has entered a range after reaching a new cycle high of 1.2244. This is potentially a warning sign for the bulls, especially that it comes coupled with two consecutive bearish evening star candle patterns (formed by the two red candles).

Nonetheless, EURUSD remains inside of the bullish channel, and as long as that is the case, the technicals will remain bullish. This makes the 1.2150 support of the channel particularly important, as it must hold in order for the bullish trend to stay unharmed. The bulls are looking toward the yearly highs around 1.2350 as their next target. This is also where the next important resistance for the pair lies.

If, on the other hand, if the 1.2150 support breaks, it will signal a trend reversal, with the 1.20 psychological zone coming in focus as the next key support.