Daily Pivots: (S1) 1.2474; (P) 1.2514; (R1) 1.2577; More….
Break of 1.2575 minor resistance suggests that correction from 1.2412 short term bottom is extending higher. Intraday bias is back on the upside for 38.2% retracement of 1.3346 to 1.2412 at 1.2769. At this point, we’d expect upside to be limited there to bring fall resumption. On the downside, break of 1.2412 will extend recent fall from 1.3793 to next key fibonacci level at 1.2048.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. Fall from 1.3793 is seen as the third leg and should target 50% retracement of 0.9406 to 1.4869 at 1.2048. At this point, we’d look for strong support from there to contain downside and bring rebound. However, firm break there will target 100% projection of 1.4689 to 1.2460 from 1.3793 at 1.1564.
