Chart of the day

EURUSD is breaking below the upside short-term support of 1.0840. A break below this support calls for an extension downside and a test of 1.0600-1.0700 zone.

Only a clear confirmed break above 1.0950 will invalidate the downside reversal here and an extension lower to the most important downside resistance. A confirmed break below the 1.0700 level will mean we will have a new swing lower. Short-term a break below 1.0830 leads to a downside reversal.

Short-term short trades could be opened here with a stop loss above 1.0900. Long EURUSD trades should be opened only upon a confirmed break above 1.0950. I am inclined to see an extension lower to 1.0700 for a test of key support.