EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3609; (P) 1.3661; (R1) 1.3700; More.

EUR/USD recovers further to as high as 1.3770 so far today and further rise could still be seen. Nevertheless, upside is still expected to be limited by 1.3852 support turned resistance and bring fall resumption. Below 1.3641 minor support will flip intraday bias back to the downside. Further break of 1.3585 will target 61.8% retracement of 1.2329 to 1.5143 at 1.3404. Break will target 161.8% projection of 1.5143 to 1.4217 from 1.4578 at 1.3076 next.

In the bigger picture, three wave rise from 1.2329 is treated as consolidation to fall from 1.6039 only and should have completed at 1.5143 already. Fall from 1.5143 is tentatively treated as resumption of the whole down trend form 1.6039 and should target a new low below 1.2329. Break of 1.4217 resistance is needed to be the first signal of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.

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