The euro currency gapped higher on the open on Monday as traders returned from the year-end holiday.
The US dollar resumed its declines from 2020 pushing currencies such as the euro higher. The common currency briefly rose to test the Dec 30, 31 highs before pulling back.
If price action continues on the pullback, we could see a near term decline. This would potentially make way for a triple top pattern as well.
A break down below January 1 lows of 1.2121 could validate the bearish pattern. For the moment, the EURUSD is likely to trade within the highs and lows of 1.2312 and 1.2121 respectively.
