The 1.2150-1.2550 range over these last few months has been convincingly taken out, taking with it the rising trendline. The hint was there that it was likely to break to the downside. The lower highs and lower lows while in range is clearly evident. There is some consolation however because it is currently at or appoaching a price band that could act as support. The band is represented by the two thick horizontal lines. The 1.19 to 1.1950 region could prove a stumbling block to further downside for now. The RSI also suggests extremely oversold on the daily chart.
Should we get a bullish reversal signal in this range then it is possble the very bearish momentum from 1.24 could cease for now, at least temporarily.
If a rally does materialise it is likely to be brief. Even if we rise back to the 1.21-1.22 area, it will provide an opportunity to short the rally.
And I think this is the best we can hope for. Considering that the US central bank is on a path to raising rates while the ECB is remaining steady, the EURUSD could well see lacklustre performance going forward. The USD should have a rising bias.