EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3341; (P) 1.3545; (R1) 1.3677; More

EUR/USD weakens further to 1.3325 today and is set to take on 1.3313 support. As discussed before, with EUR/USD still trading well within the inner falling channel, decline from 1.4719 is still in progress. Also, rise from 1.2423, as well as consolidation from 1.2329 could have completed at 1.4719 already. Below 1.3313 will target a retest of 1.2329 low. On the upside, though, a break of 1.3796 resistance will argue that fall from 1.4719 has completed and will turn short term outlook mixed, with risk of another rise to 1.4719 or above.

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 and should target 1.1639 medium term support next. 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.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box