Daily Pivots: (S1) 1.1618; (P) 1.1676 (R1) 1.1707; More…..
EUR/USD’s recovery today pulled 4 hour MACD above signal line again. A temporary low is in place and intraday bias is turned neutral for consolidations. Even in case of rebound, firm break of 1.1995 resistance is needed to confirm reversal. Otherwise, outlook will remain bearish for deeper decline. Below 1.1643 will resume the fall from 1.2555 and target 50% retracement of 1.0339 to 1.2555 at 1.1447 next.
In the bigger picture, current development suggests that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term top was formed at 1.2555 already. Decline from there should extend further to 61.8% retracement of 1.0339 to 1.2555 at 1.1186 and below. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 55 day EMA (now at 1.2049) holds.
