Daily Pivots: (S1) 1.0727; (P) 1.0777 (R1) 1.0814; More…..
EUR/USD’s fall continues today and reaches as low as 1.0721 so far. Current development argues that corrective rise from 1.0339 could be completed at 1.0905. Intraday bias remains on the downside for 55 day EMA (now at 1.0682) first. Sustained break there will affirm this view and target 1.0494 resistance for confirmation. On the upside, above 1.0798 minor resistance will turn bias back to the bias up to the upside for 1.0905 instead.
In the bigger picture, as long as 1.1298 key resistance holds, whole down trend from 1.6039 (2008 high) is still expected to continue. Break of 1.0339 low will send EUR/USD through parity to 61.8% projection of 1.3993 to 1.0461 from 1.1298 at 0.9115. However, considering bullish convergence condition in weekly MACD, break of 1.1298 will indicate term reversal. this would also be supported by sustained trading above 55 week EMA.
