It has been a quiet day on the forex, but one of the more active pairs has been the EUR/USD. Rates are off more than 50 pips and falling as the late-session approaches. As we roll toward Tuesday’s trading day, it appears as though 1.1100 will come back into play very soon. 

All in all, it has been a quiet day on the economic calendar. However, things will begin heating up at 2:30 PM EST with comments from the ECB President Lagarde. While no policy issues are expected to be addressed, the EUR/USD will still likely experience some action. If the early-week bearish sentiment is extended, then a buying opportunity may come into play. Let’s dig into the daily technicals and see if we can determine which direction this market is headed in the near-term.

EUR/USD Retraces Toward 1.1100

Sellers are winning the day in the EUR/USD, with rates trending south over the past 24 hours. Unless Lagarde takes an unexpectedly bold stance later today, the bearish pressure is likely to continue.

Here are the levels to watch for the immediate future:

• Resistance(1): Spike High, 1.1171
• Support(1): Daily SMA, 1.1126

Bottom Line: After a strong October, the intermediate-term trend is bullish for the EUR/USD. Although values are on the slide today, the uptrend in this market remains valid. If given the opportunity, buying a dip isn’t a bad way to get in on the action. 

Until elected, I will have buy orders in the queue from 1.1128. With an initial stop-loss order at 1.1094, this trade produces 25 pips on a slightly sub-1:1 risk vs reward ratio.