The rejection of lower lows last week places buyers in the driving seat. As such, traders can look for entries on every low above $1.0930, targeting $1.1000 in the short term. This formation aligns with buyers of June 15 even though the current surge has low participation. In light of this, while buyers are optimistic, conservative, risk-on traders can wait for a firm close above $1.1000 with rising volumes before engaging, targeting $1.1100 in a buy-trend formation. Any contraction forcing prices below $1.0930 and reversing July 7 gains nullifies this bullish preview.

The support zone is between $1.0800 and $1.0850, aligns with prices bouncing off in recent trading days. From the daily chart, the June 23 and 30 and the July 6 lows recovered from this zone, marking their significance. On the upper end, there must be a conclusive close above $1.0930 for the uptrend to continue. Therefore, based on this arrangement, traders can wait for a clean break above $1.0930, and even $1.1000, before riding the uptrend, trading in the direction of the June 2023 trend. Any dip below $1.0800 will cancel this bullish outlook, allowing sellers to press toward $1.0660 in the medium term.

Sellers have been unrelenting, and the euro is likely to drop even lower this week. The sell trigger is at $1.0850, aligning price action with the June 23 and 29 bear candlesticks. As it is, a sharp close below the current consolidation could allow sellers to double down on every attempt higher, targeting $1.0800 in the short term. If bears further press on, the next bear target is $1.0660 or May 2023 lows. Conversely, any unexpected revival driving euro prices above $1.0930 cancels this preview, rejuvenating stretched buyers who may target $1.1000.

The path of least resistance is northwards, from the formation in the daily chart. The failure of buyers to force prices higher, as long as bulls maintain the euro above $1.0850, could offer an opportunity for aggressive traders to ramp on longs on dips. Still, considering the euro’s volatile nature and buyers’ failure to soak in the bear momentum successfully, any drop below $1.0850 and June 23 lows may trigger a sharp sell-off. In that case, the immediate target will be $1.0800 and $1.0660. On the other hand, this will change once buyers reverse recent losses and power above $1.1000, opening up entries for an eventual ride to $1.1100.

From the daily chart, euro buyers are upbeat, and this holds considering the failure of sellers to push prices below $1.0800, unwinding gains and confirming the drawdown of June 23. For now, buyers are struggling to maintain the upswing, and every low could be entries for buyers. In the current consolidation, optimistic traders can wait for a conclusive close above $1.1000 before riding the emerging trend, targeting $1.1100. Conversely, losses below $1.0800, confirming the sellers of June 23, may see prices drop to $1.0650, or June lows.