In our recent posts, we warned of more downside action in EURUSD, and indeed that was what happened last week (not to say that anyone can predict what the Fed will do, but the charts sometimes give clear signals to be prepared at least).

EURUSD is now firmly below what was the key support zone of 1.20. The next important support is 1.16 around the September-October lows. Moreover, this zone is best to be viewed as a broader area between 1.15-1.16 because the 200-week and the 100-week moving averages are located here (currently at 1.1575 and 1.1500, respectively). The technicals are clearly bearish now with little to stop the price from reaching this support area.

That said, some consolidation in the near term seems probable as the pair is now coming out from oversold levels on intraday charts. The 1.19 zone is the first resistance higher, while 1.20 will be the key zone that needs to hold again, only this time as resistance.