The EUR/USD has fallen to support from the weekly and monthly pivots at 1.2100 and is currently consolidating; it will probably resume its down-trend and target the 1.1876 lows. However a decisive break of the hammer lows at 1.2065 would act as confirmation of a deeper sell-off. On the other hand a rebound higher would target the 1.2150 range highs initially, with a break above those probably leading to a swift short-covering rally to 1.2205.
Written by Forex4you