Daily Pivots: (S1) 1.2135; (P) 1.2186 (R1) 1.2213; More….
EUR/USD finally takes out 1.2154 key support level decisively. The development, with downside acceleration should confirm medium term reversal. Intraday bias is back on the downside for 161.8% projection of 1.2475 to 1.2214 from 1.2413 at 1.1991 next. ON the upside, break of 1.2209 minor resistance is needed to be the first sign of short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, current decline and firm break of 1.2154 support should confirm rejection by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. A medium term top should be in place at 1.2555 and deeper decline would be seen back to 38.2% retracement of 1.0339 to 1.2555 at 1.1708 first. We’ll look at the structure and momentum of such decline before decision if it’s an impulsive or corrective move.
