At first glance this could be a bearish development, and while the tone is set for lower prices in the short-term, support in the vicinity of 12150/100 will be quite impactful to the broader outlook. How the euro reacts to support (should it test it) will be telling as to whether the price action dating back to January is corrective or of the topping variety.
A test and strong turnaround from support would suggest it’s simply a corrective move within the broader uptrend dating back to last year. A bull-flag beneath the 2008 trend-line could start to develop, and may ultimately lead to a breakout beyond the long-term trend-line. However, a breach of support by way of the April trend-line/2017 high, would imply that sellers could show up in earnest and drive EUR/USD sharply lower.
A test and strong turnaround from support would suggest it’s simply a corrective move within the broader uptrend dating back to last year. A bull-flag beneath the 2008 trend-line could start to develop, and may ultimately lead to a breakout beyond the long-term trend-line. However, a breach of support by way of the April trend-line/2017 high, would imply that sellers could show up in earnest and drive EUR/USD sharply lower.