Daily Pivots: (S1) 1.2202; (P) 1.2249 (R1) 1.2311; More….
Intraday bias in EUR/USD remains on the upside at this point. Current rally is targeting 1.2494/2516 key resistance zone next. At this point, we’d continue to expect strong resistance from there to limit upside and bring reversal. On the downside, below 1.2200 minor support will turn intraday bias neutral first. But near term outlook will stay bullish as long as 1.1915 support holds.
In the bigger picture, rise from 1.0339 medium term bottom is still seen as a corrective move for the moment. Therefore, in case of another rally, we’d be expect 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 to limit upside and bring reversal. That is also close to 61.8% projection of 1.0569 to 1.2091 from 1.1553 at 1.2494. Break of 1.1553 support will confirm completion of the rise. However, sustained break of 1.2516 will carry larger bullish implication and target 38.2% retracement of 1.6039 to 1.0339 at 1.3862.
