Daily Pivots: (S1) 1.2188; (P) 1.2241 (R1) 1.2269; More….
Intraday bias in EUR/USD remains neutral for consolidation below 1.2322. As long as 1.2088 resistance turned support holds, near term outlook remains bullish and another rise is expected. Above 1.2322 will extend the medium term rise to next key fibonacci level at 1.2494/2516. We’d expect strong resistance from there to bring reversal. Meanwhile, break of 1.2088 will argue that EUR/USD has topped earlier than expected. In that case, intraday bias will be turned to the downside for 1.1915 support first.
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 further 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 61.8% retracement of 1.6039 to 1.0339 at 1.3862.
