EUR/USD Price Analysis: A move to 1.2000 is not ruled out

• EUR/USD’s rejection from 1.2240 met contention near 1.2030.
• A drop and visit to 1.2000 now appears on the cards.

EUR/USD extends the correction lower from last week’s tops well above the 1.2200 neighbourhood.

The 1.2030/20 band, where coincide recent lows, the 100-day SMA and the 4-month support line (off November’s low) reinforce this key contention area. A breach of this region could leave the psychological support at 1.2000 exposed.

On the broader picture, the constructive stance in EUR/USD remains unchanged while above the critical 200-day SMA, today at 1.1787.

Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend in the longer run.

EUR/USD daily chart