Earlier last week, the Euro-Dollar dropped below the key support level and 200-day MA at 1.20000. Below this level, bears are likely to take control. However, bulls are looking to retest the level.
- Should the test fail, bears will take control of the market to break the price through the key support level at 1.8500 with an initial target of 1.17300 as seen with the 127.2% Fibonacci extension.
- In the event that the price breaks above 1.20000, bulls will take control of the market.