EURUSD remains in an uptrend, but signs of exhaustion are starting to appear on the charts, much as we warned last week. The bulls tried to break higher but the attempt was reversed and EURUSD closed the week almost as low as where it began it.

The weekly chart below also shows us that there is some important resistance lying in this 1.23 – 1.2350 area. While EURUSD didn’t exactly test those level last week, the rejection in the weekly candle indicates that the uptrend is facing problems. The bulls need a strong close above last week’s high (1.2265) to rejuvenate their optimism, but even then, they would still face the 1.23 – 1.2350 resistance area mentioned earlier.

To the downside, 1.2150 is the nearest technical zone that should provide support. Closes below it on the daily chart will be early signs that things are starting to break down, while a move below 1.21 will open potential for EURUSD to fall to 1.20. This 1.20 area remains the key support in the current context on the weekly timeframe.