The EUR-USD looks to be channeling suggesting that this is a corrective channel against the decline from 1.4246 to 1.3608.
The channel has projected support in the 1.3680-1.37 area. A break below 1.3680 with the push of the 1-H RSI reading below 40 suggests a Bearish continuation.
Note: the RSI reflects consolidation, but also maintenance of the Bearish momentum, as it did not sustain a break above 60.
The market established a pivot at 1.3790. If a pullback fails to break above this mark, the market shows Bearish dominance in the short-term.
But, a clear break back above 1.38 suggests a further correction to the Northside, perhaps continuing development of a ZigZag correction.
This scenario has fibo expansion target toward from 1.3930 (138.2%) to 1.40 (161.8%).
The Bearish scenario would be an already completed Double 3 correction, now to be followed be a Bearish continuation swing South.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.