EURUSD testing 1.20 to the downside


The EURUSD pair dropped somewhat on Wednesday, following a nice reversal bay posted yesterday. 

At the time of writing, the euro was down 0.25% against the greenback, testing the important 1.20 level to the downside. 

Tuesday's daily candle looks like a bearish pin bar, with today's candle confirming the short-term top is probably in place for now. The pair is now testing a short-term steep uptrend line near 1.20, where the psychological level is also located.

If the pair drops below that support, a further decline toward the major support of 1.1950 is expected. 

Alternatively, if the support holds, we could see a rally toward 1.2040, with a possible extension to Tuesday's highs near 1.2080.

The medium-term trend remains neutral, and the long-term trend is also unclear as the EURUSD pair has been consolidating for more than 6 months now. 
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