As we warned in our previous weekly analysis, the move below 1.19 last Monday smelled fishy, and EURUSD returned above it already by Tuesday morning. The weekly candle closed near 1.1950, however, providing no additional clarity on the future direction of the pair from here.

While 1.19 held, we also have to note that the bearish pressures are building. EURUSD is making lower lows and lower highs since the January peak and is now below the psychological 1.20 mark. 1.19 remains the last line of support. If it breaks, the probabilities will be high that EURUSD will move below the 200-day moving average as well (currently at 1.1828). Below there, the next support area is at 1.16.

The nearest resistance from current levels remains at the 1.20 zone. As said above, 1.20 has psychological importance and the bulls will feel reinvigorated if the price moves above it.