EUR/USD Price Analysis: The pair has broken some key levels but the consolidation low remains intact

• EUR/USD is trading 0.84% lower and has broken some strong support zones.
• The next major support is at 1.1695 and a break and close would be bearish.

EUR/USD daily chart

The dollar has had a broad-based recovery on Monday as the general risk tone in the stock markets is negative. This has in turn meant that commodities are also trading lower. NZD and AUD are the worst affected currencies but the EUR has taken a beating too. This I suppose cements the greenbacks safe-haven status during risk-off bouts. 

Looking at the chart, there is a rectangle type pattern forming and a break lower could confirm the bearish tone. The bottom of the pattern is at the consolidation support low of 1.1695 but the main support in the pattern has already been taken out. This would be the red support line in the chart and it has had the most touches and was firm for a long while. 

The indicators are firmly bearish at the moment. The Relative Strength Index is under the 50 line and there is still room to hit the oversold level. The MACD histogram is under the zero level. The signal lines are still above the midpoint but they could cross over at any point now. 

The chart is still in an uptrend but there are some major reversal signals. A break of the consolidation low would be the most important one as it would make a lower high lower low chart pattern. 

Additional levels