Last week, the Euro saw a significant decline indicating that the rebound from 1.0601 may have already ended as a correction to 1.0915. This week, the initial bias is towards the downside with a focus on retesting the 1.0601 low first. A strong break below that level could target channel support at 1.0510 next. However, if the Euro manages to move above 1.0744, the intraday bias could turn neutral again.
Looking at the bigger picture, the price actions from 1.1274 are seen as part of a corrective pattern that is still ongoing. If there is a break of the 1.0601 level, the next target could be the 1.0447 support, and possibly even further down to the 100% projection level of 1.1274 to 1.0447 from 1.1138 at 1.0311. As long as the 1.0915 resistance holds, this scenario will likely remain the preferred one in case of a rebound.
In the long-term perspective, it is believed that a long-term bottom has been established at 0.9534 (2022 low). However, the fact that the upside is still capped below the 55 M EMA (currently at 1.1030) indicates that there is no clear sign of a trend reversal at this point. If the current selloff gains momentum, there is a possibility that the downtrend from 1.6039 (2008 high) could resume at a later stage.
It is important for traders and investors to closely monitor the key levels mentioned in the forecast to determine the potential future direction of the EUR/USD pair. By staying informed and analyzing the market conditions, one can make well-informed decisions when it comes to trading or investing in the currency pair.