Is this a resumption of a bigger correction, one that could take Euro down to at least 1.20 and possibly further? It's not entirely clear it is—certainly the bears hope so. We'll just have to watch it over the next week or so. We're entering an illiquid market in the NorAm time zone as the US moves towards Thanksgiving so better clues may be detected during European market hours. We're also moving to year end when many will take profits. Since Euro has been in an uptrend since June, it's going to be impacted by this which will add to the pressure on prices (excess supply).
On the three hour chart, one can see it has dropped below an uptrend line and isn't yet oversold. Lower lows are likely. I'm short from 1.3638 and will probably take some profits in the support zone.
Here's the three-hour chart:
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