Citi discusses EUR/USD technical outlook and highlights the importance of the 1.21 level for directional bias.
"EURUSD notched a mild gain of 0.1%, and hovers near 1.2120. Price action is likely to prove volatile in the days ahead. CitiFX Technicals flags pivotal support near the 1.2100 area. If EURUSD were to close below that level, we would expect the losses to accelerate at least towards the 55d MA at 1.2065," Citi notes.
"Next to watch would be the 200d day MA converging with the May 2021 low at 1.1986-1.1994. Below here, we have the head and shoulders target at 1.1932," Citi adds.