Daily Pivots: (S1) 1.0328; (P) 1.0381; (R1) 1.0412; More…
EUR/USD’s steep decline and strong break of 1.0371 minor support suggests that corrective recovery from 1.0176 has completed at 1.0531 already. Intraday bias is back on the downside for 1.0176 support. Firm break there will resume whole fall from 1.1274. For now, outlook will remain bearish as long as y 38.2% retracement of 1.1213 to 1.0176 at 1.0572 holds, in case consolidation from 1.0176 extends with another rebound.
In the bigger picture, outlook is mixed as fall from 1.1274 (2023 high) could either be the second leg of the corrective pattern from 0.9534 (2022 low), or another down leg of the long term down trend. Strong support from 61.8 retracement of 0.9534 to 1.1274 at 1.0199 will favor the former case, and sustained break of 55 W EMA (now at 1.0693) will argue that the third leg might have started. However, sustained trading below 1.0199 will favor the latter case and bring retest of 0.9534 low.
