EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5545; (P) 1.5594; (R1) 1.5671; More

EUR/USD's fall from 1.6019 extends further as expected and reaches as low as 1.5441 in early US session. At this point, intraday bias remains on the downside and further decline is expected to 1.5342/66 cluster support zone. On the upside, above 1.5545 will turn intraday consolidative first. But another fall is still expected as long as consolidation is limited below 1.5694 resistance.

In the bigger picture, as mentioned before, EUR/USD's rise from 1.4309 should have completed with a diagonal triangle patter that started at 1.5342. Firm break of 1.5342 support, which will also have EUR/USD sustaining below 55 days EMA (now at 1.5490) too, will confirm that rise from 1.4309 has completed with bearish divergence condition in daily MACD and RSI too. In such case, deeper decline should then be seen to 1.4309 and 1.4966 support zone.

However, strong rebound from there, followed by break of 1.5694 resistance, will suggest that price actions from 1.6019 is probably just developing into another sideway consolidation. But still, risk is on the downside before sustained break of 1.6019 high.

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