EURUSD dropped through the 1.0946 lows on Friday before finding bids again. The currency pair is seen to be trading close to the 1.1040 mark at this point in writing while bears prepare to come back in control soon. Ideally, prices should stay below the 1.1095 high and continue dragging lower towards at least 1.0520, if not further. Only a break above 1.1095 will delay matters further.
EURUSD has carved a larger degree upswing between 0.9535 and 1.1095 in the past several months. The single European currency should ideally produce a corrective drop of a similar degree, which could potentially extend through the 1.0100 mark. Please note that 1.0100 is the Fibonacci 0.618 retracement of the above rally and hence strong probability remains for a bullish bounce.
EURUSD is facing short term resistance around 1.1050, and bears will be inclined to be back in control there. Interim support is seen around the 1.0945-50 zone, and a break lower will confirm and accelerate the fall. On the flip side, if prices break above the 1.1095 high, they should be capped towards .1.1200. Either way, upside remains limited from here.
Trading plan:Potential drop against 1.1200
Good luck!