The Euro (EUR) extended downside movement on Tuesday, decreasing the price of EURUSD to less than 1.2350 following the release of Eurozone’s consumer confidence news. The technical bias remains slightly bullish because of a higher high in the recent upside rally. A double top price pattern can be noticed on daily chart, however, a downside breakout from the pattern’s neckline is yet to be confirmed.

Technical Analysis

As of this writing, the EURUSD pair is being traded near 1.2331. A support can be seen around 1.2215, an immediate trendline support area ahead of 1.2053, the 50% fib level support and then 1.2000, the pychological level. A break and daily closing below the 1.2000 support area shall trigger renewed selling interest, validating a move towards the 1.1554 level which is the low of the last major downside move.

On the upside, the pair is likely to face a hurdle near 1.2412, the high of yesterday (Tuesday) ahead of 1.2537, a major horizontal resistance area and then 1.2600, the pychological level. The technical bias shall remain bullish as long as the 1.2000 support area is intact.

Eurozone Consumer Confidence

The consumer confidence level across the Eurozone plunged to 0.1 points in February as compared to 1.4 points in the month before, missing the average projections of economists by a long shot. Economists were expecting a reading around 1.0 points. The data released by the European Comission has incited renewed selling pressure in the price of EURUSD.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy as bears are apprantly gaining momentum.