• EUR/USD remains depressed, extends Friday’s downside break of immediate support line.
• 100-SMA, rising wedge’s support constitute the key level to watch around 1.2120-15.
• Corrective pullback could eye previous support line but bulls may remain cautious before 1.2265.

EUR/USD remains on the back foot, heavy around 1.2175, during the initial Asian session trading on Monday. In doing so, the currency major pair justifies Friday’s breakdown of a short-term support line, now resistance, amid bearish MACD.

It should, however, be noted that the 1.2120-15 area, comprising 100-SMA and support line of the monthly rising wedge bearish formation, becomes the crucial level to watch.

Also adding to the downside filters is the 200-SMA level of 1.2060, a break of which will make the EUR/USD pair vulnerable to decline towards the early April levels surrounding 1.1860-50.

Meanwhile, corrective pullback needs to cross the previous support line around 1.2215 before challenging the stated wedge’s upper boundary close to 1.2265.

Should the EUR/USD bulls manage to cross the 1.2265 levels, the yearly top near 1.2345-50 will be in the spotlight.

EUR/USD FOUR-HOUR CHART