EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5399; (P) 1.5436; (R1) 1.5467; More

EUR/USD's correction from 1.5902 extends further to 1.5342 before turning sideway. At this point, further decline is still mildly in favor to 1.5277 cluster support (38.2% retracement of 1.4309 to 1.5902 at 1.5293). Though, downside is expected to be contained there. On the upside, above 1.5475 minor resistance will turn intraday outlook neutral first. Further break of 1.5567 resistance will suggest that that correction from 1.5902 has completed and bring retest of this high.

In the bigger picture, rise from 1.4309 has just missed 100% projection of 1.3360 to 1.4966 from 1.4309 at 1.5915. Though, the structure of the rise from 1.4309 suggest that there should at least be another rally attempt, probably to 1.6000 psychological resistance before completing the rise. However, firm break of 1.5277 cluster support will argue that 1.5902 is likely a medium term top and deeper correction should be seen to 1.4309 and 1.4966 support zone.

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