EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3346; (P) 1.3502; (R1) 1.3693; More

EUR/USD recovers after hitting as long as 1.3313, slightly above mentioned 61.8% retracement of 1.2329 to 1.4719 at 1.3242. Though, the current recovery should be relatively brief as long as 1.3663 resistance holds and bring fall resumption. As discussed before, whole corrective rise from 1.2329 could have completed at 1.4719 already and below 1.3242 fibo support will pave the way to retest 1.2329 low. On the upside, above 1.3663 will turn intraday outlook neutral first. But a break of 1.4360 resistance is needed to confirm that fall from 1.4719 has completed. Otherwise, short term risk remains on the downside.

In the bigger picture, a medium term bottom no doubt in place at 1.2329 and fall from 1.6038 should have completed. Whether such fall is impulsive or corrective in nature is debatable. But after all, in either case, as long as 1.4867 resistance holds, such decline is still in favor to resume. Though, some larger scale consolidation could be seen first. However, above 1.4867 will dampen the bearish view and argue that stronger rally would be seen to retest 1.6038 record high.

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