Daily Pivots: (S1) 1.6123; (P) 1.6166; (R1) 1.6217; More…
A temporary low is formed at 1.6112 and intraday bias is turned neutral first. Further decline is expected as long as 1.6310 resistance holds. Below 1.6112 will target a test on 1.5984/5905 key support zone. Decisive break there will carry larger bearish implication. However, break of 1.6310 will turn focus back to 1.6432 resistance.
In the bigger picture, as long as 1.5894 support holds, outlook remains bullish. Firm break of 1.6786 will resume up trend from 1.1602 (2012 low). Next upside target is 61.8% retracement of 2.1127 (2008 high) to 1.1602 at 1.7488. However, sustained break of 1.5894 will have 55 week EMA (now at 1.6058) firmly taken out too. That should indicate medium term topping and target 1.5346 key support next.
