The euro currency opened the day, with a lower gap from Friday’s close.
The declines come as the US dollar is strengthening in the early session of the trading day.
News about a new strain of coronavirus is also pushing investors to a risk-off sentiment.
The euro is currently testing the trendline support and the 4 December highs of 1.2177.
A confluence of the trend line and the horizontal support should hold for the moment.
The stochastics oscillator is also oversold and could confirm a rebound off this level.
However, from here on if the EURUSD fails to post new highs, we could see a possible correction lower.