EURUSD experienced a strong upward trend last month but hit a solid barrier around 1.1000 on November 23rd. Since then, it has dropped about 250 pips, finding support around 1.0750, which used to be a resistance level.
Right now, the price seems to be undergoing a corrective or retracement phase. It could potentially move up to the 50-61.8% Fibonacci retracement levels, roughly between 1.0875 and 1.0925. If it meets resistance in this zone, we might see a continuation of the bearish trend, indicating a shift in the market structure.
As a possible target, the price could head towards 1.0650, driven by the dollar's recent strength, especially after last week's Non-Farm Payrolls (NFP) report. This aligns with the reverse story seen in the DXY (Dollar Index).
Feel free to share your thoughts in the comments section.