Daily Pivots: (S1) 1.1613; (P) 1.1662 (R1) 1.1696; More…
Despite edging higher to 1.1711, EUR/USD quickly retreated. Considering weak momentum with 4 hour MACD staying below signal line, intraday bias is turned neutral first. Some consolidations would be seen but downside should be contained above 1.1444 resistance turned support and bring another rally. Above 1.1711 will target 1.2 handle next.
In the bigger picture, an important bottom was formed at 1.0339 on bullish convergence condition in weekly MACD. Sustained break of 55 month EMA (now at 1.1760) will pave the way to key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. While rise fro 1.0339 is strong, there is no confirmation that it’s developing into a long term up trend yet. Hence, we’ll be cautious on strong resistance from 1.2516 to limit upside. But for now, medium term outlook will remain bullish as long as 1.1295 support holds, in case of pull back.
