The Euro-Dollar has broken above its 2015 and 2016 highs a few months ago. That previous resistance is now the major support, at 1.166. If we break below this level, the Euro-Dollar may fall anyway back to 1.034.
Today, the Euro-Dollar is testing the neckline of a head-and-shoulders pattern. The support at 1.183, if broken, will reverse the short-term trend. The first target would be a little below 1.162 (around 1.159). This target will be in conflit with the medium term support at 1.166. But as sentiment is now very bullish on the cross, one has to be careful of that reversal.
