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  • EUR/USD trades on a weak note near weekly lows.
  • Immediate downside pressure looks mitigated above 1.2220/30.

EUR/USD adds to weekly losses and challenges the key support in the 1.2130 region on Thursday.

The continuation of the ongoing consolidation should not be discarded just yet. If bears fail to send EUR/USD further south of the 1.2130 region ideally in the near-term, then the pair could see its upside pressure restored and, with it, a probable new visit to the 2021 peaks in the mid-1.2300s.

In the meantime, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1590.

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