Upswing has settled euro at the 14th figure making advantage of bulls substantial. At the same time market of course will need corrective reload and we have signs of growth weakening already. This may drive to start of retracing downswing in direction of the pivot-zone 1.1348.
Local upward structure undergoes the stage of downward correction forming. Critical depth of pullback is the closest bottom (1.1378), that guards uptrend. If case this level is broken, a bearish reversal pattern O&U will be formed. Thus we can’t rule out, that bulls will actively protect this zone (watch the black arrow).
Main scenario: Decline to the 1.1378 zone and then growth towards 1.1450 with following downward reversal.
Alternative scenario: Break of 1.1378 level and further development of decline towards 1.1348.
Seeking for local signals, that might be formed in relation to the 1.1378 level.