EURUSD dropped through the 1.0709 lows late in the New York session on Monday before finding mild bids. The bears might not be done yet as they prepare to drag further towards the 1.0481 initial support in the near term.The single currency pair is seen to be trading close to 1.0740 at this point in writing and is expected to resume lower again sooner than expected.
EURUSD is now looking to produce a larger-degree corrective decline against the 1.1025 high recorded last week. The meaningful initial support is seen at 1.0481 and a break lower will confirm the termination of its initial leg lower. Prices could pull back thereafter and resume lower towards 1.0100-20 to complete the corrective decline.
EURUSD would remain well supported in the 1.0100-20 range since it is the Fibonacci 0.618 retracement of its earlier rally between 0.9535 and 1.1025 levels respectively. Alternatively, if the price continues to drop below 0.9860, it could confirm a potential continuation below the 0.9535 lows. Either way, the instrument is looking lower at least towards the 1.0100-20 range in the medium term.
Trading idea:Potential bearish move against 1.1025
Good luck!