EURUSD 1.2060 support holds

The euro currency is back in recovery mode against the US dollar after ECB said that they have policy tools available to weaken the single currency. Technical analysis shows that the neckline of an extremely large head and shoulders pattern is critical support, around 1.2060. Bulls have been defending the 1.2060 level, placing the emphasis on a potential short squeeze back towards the 1.2200 level.

• The EURUSD pair is only bearish while trading below the 1.2160 level, key support is found at the 1.2100 and 1.2060 levels.

• The EURUSD pair is only bullish while trading above the 1.2160 level, key resistance is found at the 1.2200 and 1.2220 levels.