EUR/USD Daily Outlook

Daily Pivots: (S1) 1.5646; (P) 1.5721; (R1) 1.5773; More

EURUSD's fall from 1.6038 extended further to as low as 1.5670, touching mentioned 100% projection of 1.6038 to 1.5783 from 1.5944 at 1.5689. At this point, further decline could still be seen as long as 1.5797 minor resistance holds. But still, fall from 1.6038 is treated as a correction to rise from 1.5302 only as long as 1.5611 support holds. Above 1.5797 minor resistance will turn intraday outlook neutral first. Further break of 1.5944 resistance will bring retest of 1.6038 high. However, note that a break below 1.5611 support will indicate that rise from 1.5302 has completed and open up a few short term bearish scenarios that focuses on 1.5284/5301 support zone.

In the bigger picture, medium term consolidation from 1.6019 should have completed at 1.5302 already. Decisive break of 1.6019 record high will confirm that medium term up trend has resumed and bring rise to 61.8% projection of 1.4309 to 1.6019 from 1.5284 at 1.6341 first. However, note that sustained break below 1.584/5301 support zone will argue that EUR/USD has completed a double top formation and suggest that a medium term top is in place and deeper decline should then be seen to 1.4309/4966 support zone.

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