EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3467; (P) 1.3715; (R1) 1.3883; More

EUR/USD dives to as low as 1.3313 in early US session and at this point, intraday bias remains on the downside as long as 1.3663 minor resistance holds. As discussed before, corrective rise from 1.2329 could have completed at 1.4719 already. Further fall should now be seen to 61.8% retracement of 1.2329 to 1.4719 at 1.3242 first. Break will bring retest of 1.2329 low. On the upside, above 1.3663 will turn intraday outlook neutral first. But a break of 1.4360 resistance is needed to confirm that fall from 1.4719 has completed. Otherwise, short term risk remains on the downside.

In the bigger picture, a medium term bottom no doubt in place at 1.2329 and fall from 1.6038 should have completed. Whether such fall is impulsive or corrective in nature is debatable. But after all, in either case, as long as 1.4867 resistance holds, such decline is still in favor to resume. Though, some larger scale consolidation could be seen first. However, above 1.4867 will dampen the bearish view and argue that stronger rally would be seen to retest 1.6038 record high.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box