Daily Pivots: (S1) 1.1752; (P) 1.1773; (R1) 1.1785; More….
EUR/USD drops to as low as 1.1726 so far, and intraday bias remains on the downside. Corrective fall from 1.2348 should target 38.2% retracement of 1.0635 to 1.2348 at 1.1694 and possibly below. But we’d expect strong support from 1.1062 to contain downside to complete the correction from 1.2348. On the upside, above 1.1804 minor resistance will turn neutral first. But break of 1.1988 resistance is needed to indicate short term bottoming. Otherwise, risk will stay on the downside even in case of recovery.
In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516). This will remain the favored case as long as 1.1602 support holds. We’d be alerted to topping sign around 1.2516/55. But sustained break there will carry long term bullish implications.
