EUR/USD edged lower to 1.1159 last week and breached 100% projection of 1.1848 to 1.1323 from 1.1710 at 1.1185, then turned sideway. Initial bias remains neutral this week and further decline is expected. Below 1.1159 will extend the fall from 1.1710 to 161.8% projection at 1.0861. Nevertheless, break of 1.1284 minor resistance will turn bias back to the upside for stronger rebound first.
In the bigger picture, current development suggests that fall from 1.2081 medium term top could be reversing the rise from 1.0176 (2025 low), and probably even that from 0.9534 (2022 low). Deeper fall should be seen to 61.8% retracement of 1.0176 to 1.2081 at 1.0904 next. For now, risk will stay on the downside as long as 1.1710 resistance holds, in case of rebound.
In the long term picture, immediate focus is now on 55 M EMA (now at 1.1246). Sustained break there will argue that rise from 0.9534 (2022 low) has completed as a three wave corrective move at 1.2081, after rejection at 38.2% retracement of 1.6039 to 0.9534 at 1.2019, which is close to 1.2000 psychological level. That will keep the long term down trend from 1.6039 (2008 high) intact.
