EURUSD Heavy rejection

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.