Daily Pivots: (S1) 1.1519; (P) 1.1584; (R1) 1.1619; More…..
Intraday bias in EUR/USD remains neutral at this point, with focus on 1.1529 support. Break there will indicate completion of the rebound and turn bias to the downside for retesting 1.1300 low. On the upside, in case of another rise, strong resistance should be seen at 38.2% retracement of 1.2555 to 1.1300 at 1.1779 to limit upside, at least on first attempt. Overall, price actions from 1.1300 are forming a corrective pattern, that could extend for a while before completion.
In the bigger picture, a medium term bottom should be in place at 1.1300, on bullish convergence condition in daily MACD and some consolidations would be seen. But still, note that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. That carries some long term bearish implications. Thus, we’d expect fall from 1.2555 high to resume after consolidation completes. Below 1.1300 should send EUR/USD through 61.8% retracement of 1.0339 to 1.2555 at 1.1186. And, in that case, EUR/USD would head to retest 1.0339 (2017 low).
