The market decided that there will be a breakout below the triangle it developed at the high of the EUR/USD movement and the limit of that triangle was reached and even exceeded as the pair depreciated with over 500 pips.
The current trend is bearish without a doubt and is developing as a correction of the impulse rally from 1.03400 to 1.25556. The strong support would be at 50% Fibo of the impulse, in the zone around 1.1450 - 1.1400.
Despite that there is quite a while until the pair reaches that level and we are currently focused on the D1 support level reached by the pair at 1.1700. The signal for a move north formed when the H4 bar closed at 1.17163. The closing of the D1 bar after a low at 1.17163 (at 38.2% Fibo) would confirm the expected corrective move to the upside.
I expect the correction to reach 1.1950 – 1.1970 after which the depreciation to the strong support at 1.1450 – 1.1400 will be renewed.