EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4075; (P) 1.4128; (R1) 1.4190; More

No change in EUR/USD's outlook. Intraday bias remains neutral as recovery from 1.4028 continues. Further rise to 4 hours 55 EMA (now at 1.4253) cannot be ruled out but after all, upside is expected to be limited below 1.4334 resistance and bring fall resumption. Below 1.4028 will indicate that whole decline from 1.5143 has resumed and should target next key cluster support at 1.3737.

In the bigger picture, medium term rise from 1.2456 has completed at 1.5143 on bearish divergence conditions in daily MACD. Focus now turns to 1.3737 cluster support (50% retracement of 1.2329 to 1.5143 at 1.3736). Decisive break there will also confirm the case that three wave consolidation from 1.2329 has finished at 1.5134 too. In other words, whole medium term term fall from 1.6039 should be resuming for a new low below 1.2329. On the upside, however, break of 1.4578 resistance will leave the fall from 1.5143 in three wave corrective structure and mixes up the outlook.

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