On the daily chart, we can see that EURUSD broke the key 1.07 support and extended the drop into the 1.06 handle as the divergence between the Fed and the ECB became stronger. From a risk management perspective, the sellers will have a much better risk to reward setup around the 1.07 handle where they will find the confluence of the 38.2% fibonacci retracement level and the moving averages The buyers, on the other hand, will need to break above that resistance zone to start targeting new highs.