Bulls managed to push the single currency notably above the medium-term downtrend line, which looks promising for bullish traders. The key support now lies near previous lows of 1.2060, where the broken trend line is also located.
If the price drops back below this level, the current breakout could be interpreted as a false one, with a possible decline below 1.20 as the next step.
Alternatively, if the pair continues to rally, the next target could be at 1.2140 and afterward near 1.2180.
US yields seem to have upward momentum, which might support the USD over the next few days. However, the fundamental situation still appears bearish for the greenback.