BREAKING: EURUSD drops below 1.20

EURUSD dropped below 1.20 amid an increase in US yields. However, it should also be noted that volatility on the US bond market has been relatively limited during yesterday’s stock market sell-off.

Main currency pair drops below 1.20 as well as the support zone that may be the neckline of a potential head and shoulders pattern. While this is not a textbook example of the pattern, the range of the pattern points to a potential decline to as low as 1.1880 – slightly above the next key support at 1.1850.