Technical Outlook: The EUR/USD fell to its lowest rate since mid-2017 to test levels below 1.12 as fundamental data in Europe pointed to further economic weaknesses. From a technical perspective, however, the EUR/USD might have met strong support at Fibonacci 61.8% (1.11881), which at times indicates an end of an ongoing correction (downward correction in this case). The moment could lead to a bounce- off, which if persistent, could send the EUR/USD up higher towards Fibonacci 50.0% (1.14498). It is true that the EUR/USD trades in a strong downtrend, but its pathway still seems volatile, which means rebounds and pullbacks could be expected along the way. As the EUR/USD fell already to its lower downtrend channel boundary, and it bounced off its Fibonacci 61.8% (1.11881), one can expect a rebound next to take place, which could possibly send the EUR/USD up toward the mark of 1.1400 and eventually to Resistance 1 of 1.14498 (Fibonacci 50.0%).   

If, however, the EUR/USD breaks below Fibonacci 61.8% (1.11881) and, moreover, breaks out its downtrend channel to the downside, the pair can be then expected to extend its downfall towards Fibonacci 76.4% (Support 1 of 1.08651).

Graph: (EUR/USD, Weekly)