At the start of this week, we observed a completed head and shoulders pattern in EUR/USD. We anticipated a dip and noted some key levels. EUR/USD Daily Chart(click to enlarge)Bearish Breakout:- The daily chart shows that price broke below the head and shoulders pattern and a rising trendline at the same time .- This reflects a bearish correction developing.Key Juncture:- On the daily chart, note that price is testing a previous support area from August. - Also the daily RSI is right around 40. - These are two support factors so this is the first challenge to the bearish correction.- A bullish market would likely bounce up here and continue the trend.- However, we know that Janet Yellens hawkish tone can provide strength for the dollar until close enough to the Oct 31-Nov 1 FOMC meeting. Next Support:- The weekly chart shows the bearish correction now testing a previous resistance pivot and the 100-week simple moving average (SMA). - We noted that this might not hold up. - Then, we should probably look around the 1.14 to 1.15 area for support, especially if the daily RSI is in oversold territory (below 30).EUR/USD Weekly Chart(click to enlarge)