I Expect A Deeper EUR/USD Correction

EUR/USD reached 1.15831 and together with that reached a strong resistance zone marked by the upper Bollinger bands on both the monthly and weekly time frame. It is reasonable that the pair could not break out above them and began a correction instead.

I think that correction will be deeper than the ones that formed during the rally from 1.05693 to 1.15831 and on the way down the strongest support will likely be the one marked by the blue support trend lines formed by the upward trend. I expect that the initial drop will reach 1.1450 – 1.1400, but I doubt the correction will end there.

The lower but stronger support levels are at 1.1350 and 1.1200 (which are 23.6% and 38.22% Fibo of the last rally).

Despite all that, in my opinion the current drop is corrective and once it is over we could expect a renewal of the move to the upside.

In the alternate scenario the downward trend will continue to 1.1000 and lower.