The pair has been under intense pressure yesterday dropping 300 pips from its 1,10 level.
We still consider though this setback as corrective given that the market has found some support in the form of an ascending trendline started in March. Besides, the weekly chart is still very bullish considering the slope of the 20 moving average.
However, we will pay a close attention on the coming developments as the setback is pretty impressive. A daily close below 1,07 (trenline support) would expose further decline towards 1,0550 (daily bollinger band) before a possible reversal.
We will stay on the sidelines for the time being.