The bullish coil on the hourly chart broke to the downside unexpectedly. Now the Euro has bounced mildly above critical support at 1.3207. This level has acted as support/resistance and could be forming a neckline for a head & shoulders top. Topside resistance is 1.3298 setting up a key range of 1.3207/3298.
Of note, the daily chart has reached the 37-day cycle low (this has marked the change in direction the previous 4 occurrences). Also, RSI is now in a position where is has dropped sharply relative to price and formed a positive reversal. Bottom line is that the cycle, positive RSI reversal & 1.3207 neckline support all indicate a strong chance for a tradable low at current levels.
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Nomura