EUR/USD Daily Outlook

Daily Pivots: (S1) 1.4754; (P) 1.4922; (R1) 1.5023; More

EUR/USD recovers mildly today and the break of 1.4894 minor resistance suggests that an intraday low is in place at 1.4820 and turns bias neutral for the moment. Some consolidations could be seen but upside is expected to be limited well below 1.5037 resistance and bring fall resumption. Below 1.4801/20 support zone will target 1.4626 support next.

In the bigger picture, the failure to break through 1.5143 resistance and subsequent sharp fall and break of 1.4828 support revives the case that EUR/USD has topped out at 1.5143 already. Focus now turns to 1.4626 support and break there will confirm that case rise from 1.2456 has finished at 1.5143 already, on bearish divergence conditions in daily MACD and RSI. This will also mark the completion of the whole three wave consolidation pattern from 1.2329 and the whole down trend from 1.6039 is possibly resuming for another low below 1.2329 in such case.

On the upside, another high above 1.5143 cannot be ruled out for the moment. But after all, even in case of another rise, we'd expect strong resistance at 123.6% projection of 1.2329 to 1.4719 from 1.2456 at 1.5410 to conclude the medium term rise from 1.2456 eventually.

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