The key support now stands at yesterday's lows at the 1.20 barrier, which is also the major psychological support. If the euro drops below that support, a test of February lows at 1.1950 seems very likely.
The medium-term outlook is slowly turning bearish as US yields continue to spike higher, with the 10-year yield rising toward 1.5% again. Unless the Fed does something, we could see further volatility in the equity markets, which should benefit the safe-haven USD.
Alternatively, the pair needs to get above 1.21 for bulls to be more aggressive, with the next target in the 1.2180 region.
The short-term outlook seems unclear as the pair is jumping up and down, but it looks like bulls are slowly leaving the market on the larger timeframes.
