EURUSD declined straight down from Monday to Friday last week without looking back. The pair is now back at the lows around 1.1750, where it was two weeks ago. The significant support area that exists here hasn’t been broken yet, although last week’s decline suggests that’s becoming increasingly likely.

In case of a bearish breakout, the next important support lower is at 1.16, which is a confluence of left shoulder lows and the 200-week and 100-week moving averages. The target of the head and shoulders, which would be live in this scenario, is much lower – toward the 1.12 and 1.11 levels.

To the upside, the initial resistance is at the prior highs around 1.19, while the more important resistance zone remains at 1.20.