Daily Pivots: (S1) 1.1887; (P) 1.1933 (R1) 1.1968; More….
Downside momentum in EUR/USD remains unconvincing as seen in 4 hour MACD. But with 1.1977 minor resistance intact, intraday bias remains on the downside. Break of 200% projection of 1.2475 to 1.2214 from 1.2413 at 1.1891 will target 261.8% projection at 1.1730. Though, break of 1.1977 will suggest short term bottoming. In that case, intraday bias will be turned to the upside for 4 hour 55 EMA (now at 1.2036) or above for rebound.
In the bigger picture, current decline and firm break of 1.2154 support confirms 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. With current downside acceleration, there is prospect of hitting 61.8% retracement at 1.1186 before completing the decline. But still, we’ll need to look at the structure to before deciding if it’s a corrective or impulsive move.
