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  • 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