The euro currency has staged a major reversal against the US dollar after suffering a heavy technical rejection from the 1.2300 resistance area. Technical analysis shows that the EURUSD pair could form a massive head and shoulders pattern if the sell-off reaches the 1.2130 level. To the upside, bulls need to move the price back above the 1.2275 level to encourage short-term buyers.
The EURUSD pair is only bullish while trading above the 1.2230 level, key resistance is found at the 1.23o0 and 1.2400 levels.
The EURUSD pair is only bearish while trading below the 1.2230 level, key support is found at the 1.2150 and 1.2130 levels.
