Daily Pivots: (S1) 1.1759; (P) 1.1793 (R1) 1.1855; More….
EUR/USD’s rebound continues today and focus is back on 1.1860. Break will confirm resumption of rise from 1.1553. As noted before, corrective fall from 1.2091 has completed at 1.1553 already, ahead of 38.2% retracement of 1.0569 to 1.2091 at 1.1510. Above 1.1860 will extend the rally to retest 1.2091 high. In any case, near term outlook will remain cautiously bullish as long as 1.1677 support holds.
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 1.1373) will suggest that such medium term rebound is completed and could then bring retest of 1.0339 low.
