Dropping below 1.1850 took many stop-losses of long positions, which led to another 20-30 pips decline. As the pair is now below strong support and stop-losses are taken out, it is possible we will see a strong rally.
Although the technical picture now looks bearish, markets often kill stop-losses below some important levels only to start rallying the next day.
Nevertheless, if the euro continues to drop, the next support should be at 1.1760 before the strong level of 1.16. Should the euro drop below 1.16, the long-term trend might change to bearish.
Alternatively, if a rally occurs, the resistance is seen near 1.1850, the next one at 1.1900, and the most important one at 1.1950. If the euro rises back above 1.1950, the medium-term uptrend can continue.
