The euro currency continues to extend declines. The support level near 1.0811 was lost.
In the process, price action is forming a potential head and shoulders pattern.
The neckline support is forming at the 1.0793 level. Currently, prices have bounced back off this level which could see a right shoulder forming.
If this is validated, further declines are expected in the near term.
We expect the downside target to be at least 1.0739 on a successful head and shoulders pattern if it forms.
