EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5468; (P) 1.5527; (R1) 1.5609; More

EUR/USD dives further to as low as 1.5378 before recovering mildly. Decline from 1.5843 is still in progress and further fall is expected to 1.5365 support. As discussed before, break will confirm that price actions from 1.5284 has completed with three waves up to 1.5843 already. In other words, it should merely be consolidation to the whole fall from 1.6019. In such case, deeper decline should be seen to below 1.5284 low. On the upside, above 1.5584 will suggest dampen this case and turn outlook neutral first.

In the bigger picture, a medium term top is in place at 1.6019 after meeting 1.6 psychological resistance. There is no confirmation of the completion of subsequent correction/consolidation yet. Recent development argues that such consolidation is still in progress, further break of 1.5365 support will confirm this case and bring another fall towards 1.4966 medium term support level. On the upside, above 1.5843 is needed to revive the case that consolidation from 1.6019 has completed and bring retest of this high.

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