Yesterday saw a larger-than-expected pull back on EURUSD.
From the 2-week chart we can see the significance of 1.10628 labelled above in purple. The high of the candle that made our recent low.
Zooming into the 1-day time frame I have highlighted the congested area that I expect price to fall to if we break the current support. Within this yellow box there will be several leg start candidates that we can play scalps off. As always, the red level of 1.09913 indicates invalidation of our trend and therefore provides an ultimate stop-loss price.
As we observe lower time frames more levels begin to appear. 1.10270 is technically the 4-hour leg start and should get a reaction if we come that low. We can also see no reversal patterns on the 4-hour. Of course there is no rule to say we must have one, but the slowing of bearish momentum in the lower time frames, offsetting higher time frames, usually produces at least a double-bottom.
We must also consider the higher time frame analysis and remember targets of 1.12155 above could be what we are aiming for, before the big dump lower.