• EUR/USD short squeeze could be put on in the coming day/sessions.
• However, if the bears commit at a 38.2% or below 1.0625, then there will be prospects of a move into the 1.0580/70s.

EUR/USD is down low with respect to the prior day's range following three days of traders shorting the pair. The bias is bullish USD but a failed break of last week's lows could be a recipe for a sizeable correction to the upside for the days ahead. The following illustrates the week's template and prospects of a short squeeze following three days of shorts (S1, S2 & S3). 

EUR/USD H4 chart

EUR/USD M15 chart

Will Thursday be the first day of longs, a higher close in other words, (L1)?

If so, the thesis for the day ahead would be to buy the dip depending on what session the opportunity comes in, if at all. 

For the immediate future, we could see a downside extension as follows: 

If the bears commit at a 38.2% or below 1.0625, then there will be prospects of a move into the 1.0580/70s for the sessions ahead.