TD Research sees a scope for EUR/USD to extend lower towards 1.14.
" EURUSD has languished below the 200dma and has demonstrated the capacity to break below crucial level of 1.16. This level marks a key technical marker. Specifically, it is neckline support of a soft-form head and shoulders pattern established from the summer 2020 melt-up," TD notes.
"We reckon the move below 1.16 should be rather pivotal for momentum players in carving out a new lower trading range that could stretch as far as 1.14 (note 1.1493 marks 50% fibo retracement of the 2020/21 high/low however)," TD adds.