Daily Pivots: (S1) 1.0912; (P) 1.1031; (R1) 1.1096; More…
EUR/USD recovered after dipping to 1.0942 but further decline is still in favor as long as 1.1148 resistance holds. Sustained trading below 1.1011 resistance turned support will argue that larger correction is underway. Deeper fall would then be seen to 1.0832 support and below. For now, risk will stay mildly on the downside as long as 1.1148 resistance holds, in case of recovery.
In the bigger picture, a medium term top could be formed at 1.1274, after failing to break through 61.8% retracement of 1.2348 (2021 high) to 0.9534 at 1.1273 decisively, on bearish divergence condition in D MACD. Sustained trading below 55 D EMA (now at 1.0962) will bring deeper correction to 1.0634 cluster support (38.2% retracement of 0.9534 to 1.1274 at 1.0609). Strong support could be seen there, at least on first attempt, to set the range for consolidation.
