EUR/USD Price Analysis: Decent support lines up near 1.2130

• EUR/USD reverses Tuesday’s advance and returns to sub-1.22 levels.
• Further decline is seen if 1.2130 is cleared.

EUR/USD gives away the earlier advance to 1.22 and beyond and slips back to the 1.2170 region on Wednesday.

That said, it seems bulls can’t regain control of the markets just yet, leaving the door open to the continuation of the leg lower in the short-term horizon with the next target at the weekly lows near 1.2060 (December 9 2020).

In the meantime, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1584.

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