Daily Pivots: (S1) 1.1582; (P) 1.1709 (R1) 1.1779; More…
EUR/USD reaches as low as 1.1587 so far and intraday bias remains on the downside. Fall from 1.2091 should target 38.2% retracement of 1.0569 to 1.2091 at 1.1510 next. At this point, such decline is still viewed as a correction. Hence, we’d expect strong support from 1.1510 to bring rebound, at least during first attempt. However, firm break there will bring deeper decline to 61.8% retracement at 1.1150. On the upside, above 1.1643 minor resistance will turn intraday bias neutral first. But near term outlook will remain bearish as long as 1.1879 resistance holds.
In the bigger picture, rise from medium term bottom at 1.0339 is not finished yet. It’s expected to continue after pull back from 1.2091 completes. And, next target will be 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. However, it should be noted that there is no confirmation of trend reversal yet. That is, such rebound from 1.0399 could be a correction. And the long term fall from 1.6039 (2008 high) could resume. Hence, we’d be cautious on strong resistance from 1.2516 to limit upside.
