EUR/USD Daily Outlook

Daily Pivots: (S1) 1.5545; (P) 1.5594; (R1) 1.5671; More

EUR/USD falls further to as low as 1.5429 before turning sideway. At this point, intraday bias remains on the downside as long as 1.5545 minor resistance holds and further decline is still expected to 1.5342/66 cluster support zone. On the upside, above 1.5545 will turn intraday consolidative first. But another fall is still expected as long as consolidation is limited below 1.5644 resistance.

In the bigger picture, as mentioned before, EUR/USD's rise from 1.4309 should have completed with a diagonal triangle pattern that started at 1.5342. Firm break of 1.5342 support, which will also have EUR/USD sustaining below 55 days EMA (now at 1.5490) too, will confirm that rise from 1.4309 has completed with bearish divergence condition in daily MACD and RSI too. In such case, deeper decline should then be seen to 1.4309 and 1.4966 support zone.

However, strong rebound from there, followed by break of 1.5644 resistance, will suggest that price actions from 1.6019 is probably just developing into another sideway consolidation. But still, risk is on the downside before sustained break of 1.6019 high.

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