Daily Pivots: (S1) 1.1897; (P) 1.1932 (R1) 1.1974; More….
EUR/USD’s rebound from 1.1822 short term is still in progress and reaches as high as 1.1992 so far. Intraday bias remains on the upside for 38.2% retracement of 1.2413 to 1.1822 at 1.2048. We’d expect strong resistance from there to limit upside to bring fall resumption. On the downside, below 1.1932 minor support will turn bias to the downside for 1.1822 first. Break will resume the whole decline from 1.2555 and target 1.1708 medium term fibonacci level next.
In the bigger picture, current development suggests that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term was formed at 1.2555 already. Decline from there should extend further. Break of 38.2% retracement of 1.0339 to 1.2555 at 1.1708 will target 61.8% retracement at 1.1186. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 55 day EMA (now at 1.2179) holds.
