Daily Pivots: (S1) 1.1704; (P) 1.1754 (R1) 1.1848; More…
EUR/USD’s rise from 1.1553 is still in progress. The break of 1.1836 resistance should confirm our bullish view. That is, correction from 1.2091 has completed at 1.1553 already. Further rally would be seen to retest 1.2091 high. On the downside, below 1.1784 minor support will bring consolidations before staging another rally.
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.
