As we suggested in the weekly analysis last Monday, EURUSD did bounce at the 1.1550 support zone. The retracement could extend here for a while, but the bounce lacks any serious momentum thus far, and the odds still suggest that this should only be a shallow correction. The head and shoulders pattern that was triggered by the break and confirmation of the neckline this summer remains alive and has its target projection in the 1.12 area.

If the upward correction extends, then 1.17 and 1.1750 are the key resistance zones that should hold bullish attempts and keep the downtrend intact. While unlikely, a strong move north of 1.1750 can seriously challenge the current downtrend and would at least mean that a move to 1.19 or 1.20 is becoming more probable.

To the downside, the first support remains at the lows at the 1.1550 zone (1.1520 actual low). Below it, if the downtrend resumes, EURUSD could extend toward 1.14 and lower as part of the gradual bearish trend here.