Daily Pivots: (S1) 1.1793; (P) 1.1866 (R1) 1.1912; More….
Despite breaching 1.1822 support, there is no follow through selling seen in EUR/USD yet. Nonetheless, intraday bias remains on the downside side. The decline from 1.2555 is seen as resuming for 1.1708 medium term fibonacci level next. Break will target 1.1553 support. And, on the upside, break of 1.1995 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
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 1.2162) holds.
