EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3439; (P) 1.3565; (R1) 1.3634; More.

Intraday bias in EUR/USD is turned neutral again with 4 hours MACD crossed above signal line. Recent decline is not ready to resume yet and more consolidations would be seen. Above 1.3691 minor resistance will indicate that a short term bottom is formed at 1.3443 with bullish convergence condition in 4 hours MACD RSI. In such case, stronger rebound should be seen towards near term trend line resistance (now at 1.3965) before staging another fall. Nevertheless, break of 1.3443 low will confirm that fall from 1.4578 has resumed for 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 invalidate this bearish view. Otherwise, we' expect 1.5143 to continue even in case of strong rebound.

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