EUR/USD: consolidation could continue

We maintain a bearish bias below 1.2280 which continues to cap the EUR/USD. However, given Monday's candlestick bar, conviction is waning a bit and we will remain cautious.

KEY CHART ELEMENTS

The graphical analysis of daily data of the pair's price allows us to identify a medium-term downward trend.

MEDIUM-TERM FORECAST

As long as the 1.2280 level resists, a consolidation is favoured, with the 1.20 support zone as a major objective.

We will be cautious, however, as the euro/dollar recovered well on Monday, which somewhat weakens the conviction.