- EUR/USD breaches the 1.22 support to trade in 3-week lows.
- Extra losses could extend to the 1.2130/25 band.
EUR/USD loses the grip further at the beginning of the week and drops to 3-week lows near 1.2150.
Against this, the corrective downside in EUR/USD could have further legs to go and a move lower to the weekly low at 1.2129 (December 21) should not be ruled out in the very short-term horizon.
In the meantime, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1570.
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