The euro currency closed out the week on a bearish note. Price action on Friday was to the downside following a brief intraday spell to the upside.
With the resistance level at 1.1261 clearly established, the downside for the euro opens up.
We expect a move towards the 1.1132 level where support is likely to keep the currency from falling further.
However, the longer-term target remains at 1.1100. But this depends on how the currency pair will react near the initial support.
We could expect a rebound off the 1.1132 region. This will potentially see some consolidation taking place.
There is also a possibility for the common currency to rebound back to 1.1261 as well. A strong close below 1.1132 is required to confirm the drop to 1.1000.