Daily Pivots: (S1) 1.0856; (P) 1.0895; (R1) 1.0919; More…
While EUR/USD continues today lose downside momentum, further decline is still expected as long as 1.1064 resistance holds. Break of 1.0832 will extend the fall from 1.1274 to 1.0609/34 cluster support. However, break of 1.1064 will argue that the fall has completed and turn bias back to the upside for stronger rebound.
In the bigger picture, a medium term top could be formed at 1.1274, after failing to break through 61.8% retracement of 1.2348 (2021 high) to 0.9534 at 1.1273 decisively, on bearish divergence condition in D MACD. Sustained trading below 55 D EMA (now at 1.0966) will bring deeper correction to 1.0634 cluster support (38.2% retracement of 0.9534 to 1.1274 at 1.0609). Strong support could be seen there, at least on first attempt, to set the range for consolidation.
