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  • Daily downside leg is due for a correction.  
  • EUR/USD bulls are seeking a significant upside correction.

EUR/USD is overextended to the downside and the bulls are in anticipation of an opportunity as the Momentum slows and consolidation kicks in.

The following illustrates where the next upside opportunity could come from a break of lower time-frame resistance.

EUR/USD daily chart

The M-formation is overextended and the bulls will be on the lookout for bullish conditions on the lower time frames to target a significant correction.

EUR/USD 30-min chart

On the 30-min chart, the conditions are bearish with Momentum to the downside and the price well below the 10 SMA.

However, on a break of critical resistance, the conditions will be bullish and there would be a higher probability of a significant retracement.