Daily Pivots: (S1) 1.1430; (P) 1.1513; (R1) 1.1562; More…..
EUR/USD’s fall from 1.1814 resumed after brief consolidation and hits as low as 1.1463 so far. Intraday bias is back on the downside for 1.1300 low next. On the upside, break of 1.1593 minor resistance is needed to indicate short term bottoming. Otherwise, outlook will stay cautiously bearish in case of recovery.
In the bigger picture, a medium term bottom should be in place at 1.1300, on bullish convergence condition in daily MACD and some consolidations would be seen. But still, note that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. That carries some long term bearish implications. Thus, we’d expect fall from 1.2555 high to resume after consolidation completes. Below 1.1300 should send EUR/USD through 61.8% retracement of 1.0339 to 1.2555 at 1.1186. And, in that case, EUR/USD would head to retest 1.0339 (2017 low).
