Downswing didn’t exhaust its potential, which is at least located at the area of the last structure’s low (1.1300). Penetration of this barrier can be quite complicated for bears, however in general we can expect further ease of euro quotes in direction 1.1250.
Local downward structure needs correction after trending swing with big amplitude. And it seems, that correction is launched from the area of local support 1.1326. We don’t recommend to go long inside such pullback, since its development potential (zone 1.1380-1.1400) may not cover the risks. Much more calm approach is to miss this correction, looking for new sell signals on its completion.
Main scenario: Pullback in direction 1.1390-1.1400 and then continuation of euro decline in direction 1.1300 and 1.1250.
Alternative scenario: Extension of losses towards 1.1250 without strong prior correction.
Looking for sell signals at the 1.1390-1.1400 area.