EUR/USD’s Correcting Drop

Pair’s trading stays on the downside. The decline from 1.2091 is extending. Larger fall should align 1.1661 support. The drop is correcting the intact lift from 1.0569. Breach of 1.1661 will head towards 38.2% retracement of 1.0569 to 1.2091 at 1.1510. The support from that spot will draw a recoil. Following pivot points include: (S1) 1.1708; (P) 1.1752 (R1) 1.1787.

Over 1.1861 minor resistance trading will turn up in the neutral position. Breach of 1.2029 resistance will indicate that the retreat has ended. The correction expands and larger decline is possible.

The lift from the medium term bottom of 1.0339 keeps extending towards 38.2% retracement of 1.6039 to 1.0339 at 1.2516. Trend reversal is so far unlikely. The recoil from 1.0399 has a corrective manner. The long term decline from 1.6039 might be progressing. Sustained resistance from 1.2516 should limit the upside. Breach of 1.1661 will argue formation of a medium term top. If EUR/USD backs down, prognosis will stay bullish.