EUR/USD Daily Outlook

Daily Pivots: (S1) 1.3499; (P) 1.3618; (R1) 1.3750; More

EUR/USD is still bounded in sideway trading below 1.3737 as consolidation continues. Intraday bias remains neutral at this point and another pull back cannot bed ruled out. But after all, downside is expected to be contained well above 1.2991 support and bring rally resumption. Above 1.3737 will target 1.3822 next (61.8% retracement of 1.4719 to 1.2456 at 1.3855). Break will then target 1.4719 resistance.

In the bigger picture, recent development suggests that EUR/USD is still bounded in sideway consolidation that started at 1.2329, with rise from 1.2456 as the third leg. Having said that, current rise might extend further to 1.4719 or above. But after all, such consolidation should be limited by 1.4867 resistance and bring down trend resumption. On the downside, below 1.2991 will turn focus back to 1.2329 low.

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