The heavily one-sided EU–US deal has put negative pressure on EURUSD. Ahead of a crucial week filled with major events, including GDP data from both the Eurozone and the US, the PCE report, payrolls, and meetings from the FOMC and BOJ, EURUSD has broken a short-term head and shoulders formation. The pattern’s target is near 1.1610.

A retest of the broken support is possible and could even extend to 1.1725. However, unless sentiment changes due to some news, this move may offer only a selling opportunity. The downward trend could also continue without pause.

Options market activity suggests that the 1.16 to 1.18 range is viewed as a “safe zone,” with large players likely aiming to keep EURUSD within this band for the week. If the head and shoulders target is reached, EURUSD might stabilize and bounce around the 1.16 level.