In yesterday’s trading, EURUSD recorded its worst one-day loss since the middle of last month, suggesting that bears could regain control.

The move was triggered by a surge in the US dollar from a much better than expected CPI release which rose to 5.4% – the biggest monthly gain since August 2008.

This has pressured EURUSD to the downside where trades will now be eyeing the next major support level.

Source: Admirals MetaTrader 5, EURUSD, Weekly – Data range: from Sep 15, 2019, to Jul 13, 2021, performed on Jul 13, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

In the long-term weekly chart of EURUSD shown above, the price has recently rejected the upper horizontal resistance line around 1.2253. Since then, the price has been trending lower.

Traders will now be focused on the major horizontal support level around 1.1651. If the bears can remain in control this is the level that could stop them in their tracks. This will also complete the long-term consolidation pattern between the two black horizontal lines.

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