Daily Pivots: (S1) 1.1584; (P) 1.1631 (R1) 1.1708; More…
EUR/USD surges to as high as 1.1759 so far today. The strong break of 1.1689 minor resistance and near term falling channel indicates the correction from 1.2091 has completed at 1.1553 already. Intraday bias is now back on the upside for 1.1836 resistance first. Break there will pave the way to retest 1.2091 high. On the downside, below 1.1689 resistance turned support will turn bias back to the downside for 1.1553 low instead.
In the bigger picture, rise from 1.0339 medium term bottom is seen as a corrective move for the moment. Therefore, in case of another rally, we’d be cautious on 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 to limit upside and bring reversal. Meanwhile, sustained trading below 55 week EMA (now at 1.1346) will suggest that such medium term rebound is completed and could then bring retest of 1.0339 low.
