EURUSD retraced moderately last week following the big decline the week before. However, the trend remains bearish as long as EURUSD stays below the big 1.20 resistance zone. The convergence of past lows with the 100-day and 200-day moving averages makes the 1.20 zone a particularly robust resistance.

While the pair has hit a moderate support zone around 1.1850, the bearish trend change that occurred with the break below 1.20 remains in force and suggests that the 1.1850 low will probably be taken out. In such a bearish scenario, EURUSD can fall toward 1.17 and 1.16, which is where the next support zone is located.