Daily Pivots: (S1) 1.2647; (P) 1.2689; (R1) 1.2745; More….
With 1.2626 minor support intact, rebound from 1.2506 is still mildly in favor to extend to 55 day EMA (now at 1.2801). Nevertheless, we’d expect strong resistance from 38.2% retracement of 1.3381 to 1.2506 at 1.2840 to bring fall resumption. On the downside, below 1.2626 minor support will turn intraday bias back to the downside for 1.2506 first. However, sustained break of 1.2840 will bring stronger rise to 61.8% retracement at 1.3047 next.
In the bigger picture, medium term decline from 1.4376 (2018 high) is possibly ready to resume. Decisive break of 1.2391 would target a test on 1.1946 long term bottom (2016 low). For now, we don’t expect a firm break there yet. Hence, focus will be on bottoming signal as it approaches 1.1946. In any case, medium term outlook will stay bearish as long as 1.3381 resistance holds, in case of strong rebound.
