Price has been making lower lows & lower highs for the last few days on EURUSD , and trading within about a 70 pip . Currently price has been pulling back off the most recent swing move (and lower channel limit), which has made a sort of mini-channel for the last 12 hours or so. We could see one of two things:
1. Price continue to trade within this towards the upper channel limit
2. Price break out of this mini-channel to the downside (with targets at the 1.05650 area)
If price in fact does break out and continue to the downside, we could be seeing the confirmation of an even steeper - which means a deeper retrace of last weeks move.