EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5810; (P) 1.5849; (R1) 1.5921; More

EUR/USD retreats sharply in early US session and break of 1.5775 minor support indicates that an intraday top is already in place at 1.5908. Intraday outlook is turned neutral for the momentum with bias mildly on the downside for deeper pull back to inner rising channel support (now at 1.5721). Nevertheless, downside should be contained by 1.5651 resistance turned support and bring another one more rise. As discussed before, prior break of 1.5843 resistance is taken as the second signal that consolidation from 1.6019 has completed at 1.5302 already. Retest of 1.6019 record high should be seen. Break will confirm medium term up trend has resumed.

In the bigger picture, a medium term top is in place at 1.6019 after meeting 1.6 psychological resistance. Above 1.5843 indicates that such consolidation has likely completed at 1.5302 already. Further decisive break of 1.6019 will confirm this case and bring rise to 61.8% projection of 1.4309 to 1.6019 from 1.5284 at 1.6341 first. On the downside, while another setback cannot be ruled out before completing the consolidation, downside should be contained above 1.5302 support. Break of this support level is needed to switch to the case that price actions from 1.6019 are developing into deep correction to test 1.4966 cluster support.

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