EURUSD took some heavy fire over the past few sessions, but the current structure of higher highs and higher lows does not appear to have been violated, keeping the recent rally in play for now. That said, a clear close below the critical 1.1995 support zone could change all that, shifting the positive structure back to neutral and setting the stage for further declines.
The short-term oscillators reflect the latest drop in the market, with the RSI hovering just above its 30 zone and the MACD turning negative and trading beneath its red trigger line as well.
In case sellers stay in control and manage to push below the 1.1995 territory, all eyes would then turn towards the 1.1925-1.1940 region, which also encapsulates the 200-period simple moving average (SMA). Another negative break could open the way for the 1.1870 support area.
If buyers retake the wheel, their first target would be the 1.2055 barrier, marked by the latest inside swings low. The 50-period SMA is just above, currently at 1.2067. Overcoming this resistance zone, the focus would turn to the 1.2110 level, before the latest high of 1.2150 comes into play.
Summarizing, the pair has fallen sharply lately but as long as it holds above the all-important 1.1995 region, the short-term picture still seems positive.