EUR/USD is retreating from around 1.2200, with pre-holiday trading.

From a technical perspective, the pair, so far, has managed to defend a seven-week-old ascending trend-line. EUR/USD price are back in bull flag carved out in two weeks of December, following the bullish breakout above sideways range resistance .

EUR/USD is closely followed by the 1.2170 horizontal and trend-line support , which if broken decisively will be seen as the first sign of bullish exhaustion that would generate initial reversal signal .Some follow-through selling below the 1.2100 mark will add strength to the bearish break and turn the pair vulnerable to accelerate the fall further towards the key 1.2000 psychological mark.

On the flip side, the 1.2200 round-figure mark now seems to act as immediate resistance, above which the pair is likely to climb back to the 2020 High (1.2270) . Bulls might then wait for a sustained strength beyond the 1.2280 region, before positioning for any further gains to push the pair to the 1.2300 and next hurdle near the 1.2340 region.