The euro closed last Thursday with modest declines after giving back the intraday gains.
On the intraday charts, price action already breached the trendline.
The intraday gains on Thursday saw the trendline being retested, but prices were rejected. This could now see the euro likely to post declines in the near term.
For the moment, the initial minor support levels near 1.2160 will be critical.
If price action closes below this level on a daily basis, then we could see further declines.
The next key level of support comes in near 1.2050. Otherwise, a retest of this level would put it within the long term correction.
To the upside, price action will need to inevitably post higher highs in order to continue with the uptrend.
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