EUR/USD Daily Outlook

Daily Pivots: (S1) 1.5304; (P) 1.5372; (R1) 1.5462; More

EUR/USD's rebound from 1.5284 continues today and at this point, intraday bias is mildly on the upside as long as 1.5387 minor support holds. Further rebound could be seen to 4 hours 55 EMA (now at 1.5508). However, another fall is expected as long as EUR/USD stays below 1.5594 resistance. Below 1.5284 again will encourage decline towards next short term target of 1.4966 cluster support (61.8% retracement of 1.4309 to 1.6019 at 1.4962) and probably below.

In the bigger picture, as mentioned before, EUR/USD's rise from 1.4309 should have completed at 1.6019 with a diagonal triangle pattern that started at 1.5342 and with bearish divergence condition in daily MACD and RSI. Firm break of 1.5342 support, which will also have EUR/USD sustaining below 55 days EMA (now at 1.5490) too, will confirm this case and deeper decline should then be seen to 1.4309 and 1.4966 support zone. However, strong rebound from here , followed by break of 1.5594 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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