EUR/USD Price Analysis: 1.2140 has emerged as strong support

EUR/USD's downturn from the Jan. 6 high of 1.2349 has stalled with sellers struggling to keep losses below 1.2140.

That level has restricted downside at least three times in the past 72 hours and has neutralized the immediate bearish bias. A positive follow-through in the form of a quick move above 1.2223 (Wednesday's high) would revive the bullish bias and shift risk in favor of a re-test of the recent high of 1.2349. 

Alternatively, a 4-hour close below 1.2140 would revive the bearish view put forward by the daily chart rising wedge breakdown confirmed last week and open the doors for a drop to 1.2050-1.20. 

At press time, the pair is trading near 1.2170, representing a 0.11% gain on the day. 

4-hour chart

Trend: Neutral

Technical levels