Daily Pivots: (S1) 1.2232; (P) 1.2261 (R1) 1.2308; More….
EUR/USD’s rebound from 1.2214 extends to as high as 1.2321 so far today. The upside acceleration dampens the immediate bearish case. Focus is back on 1.2344 minor resistance. Break there will indicate that the decline from 1.2475 has completed and turn bias back to the upside for this resistance. Break will target a test on 1.2555 high. On the downside, below 1.2214 will target 1.2154 key support first. Firm break there should confirm rejection by 1.2516 key fibonacci resistance.
In the bigger picture, key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 remains intact despite attempts to break. Hence, rise from 1.0339 medium term bottom is still seen as a corrective move for the moment. Rejection from 1.2516 will maintain long term bearish outlook and keep the case for retesting 1.0039 alive. Firm break of 1.1553 support will add more medium term bearishness. However, sustained break of 1.2516 will carry larger bullish implication and target 61.8% retracement of 1.6039 to 1.0339 at 1.3862 in medium term.
