From yesterday: “Intraday support is found at 1.0950, last week’s spike high. A break of this level and 1.0900 will probably end the squeeze higher and give scope for a prolonged phase of consolidation between 1.0700 and 1.1000”.

EUR/USD dropped sharply at the start of the European session on Tuesday, down to 1.0834 at the time of writing. The pair fell after yesterday it failed again to breach the 1.1050 mark. From here we expect the pair to find some support around the 1.0850/30 area, and another dip lower will target 1.0800. To the upside, a bounce should be capped by 1.0900.