After testing the broken neckline two weeks ago, EURUSD continued the slide and is now pressing on the 1.17 lows again. Given the head and shoulders pattern and the successful retest of the neckline (both of which we discussed extensively in recent months), the weekly EURUSD technicals are clearly turning bearish here. The target of the H&S pattern is at the 1.12 zone, which EURUSD could reach in the months ahead.

On the way down, there are a few important support areas where the price could react. Firstly, the 1.17 zone near the prior lows is a moderate support zone. The more important support is located at the 1.16 area, where the 200-week (red) and 100-week (orange) moving averages meet. If and when this support breaks, the 1.12 H&S target will become a much more realistic scenario, if not even quickly reached because there are no big support areas in between.

As for the nearest resistance levels to the upside, 1.19 around the neckline remains the key zone that needs to hold for the bearish dynamics to remain intact.