EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3071; (P) 1.3127 (R1) 1.3164; More.

No change in EUR/USD's outlook. Rebound from 1.2625 is still in favor to continue with 1.2931 minor support intact. Sustained trading above 38.2% retracement of 1.4246 to 1.2625 at 1.3244 will bring stronger rebound to next fibo level at 61.8% retracement at 1.3627. On the downside, below 1.2931 will indicate completion of such rebound and flip bias back to the downside for retesting 1.2625 low instead.

In the bigger picture, price actions from 1.6039 are unfolding as a consolidation pattern in the long term and is in progress. Fall from 1.4939 is a falling leg inside the pattern. It's hard to anticipate the length of a leg of any complex corrective pattern. Also, price actions would likely remain choppy and indecisive with misleading momentum indicator readings. . But after all, overall picture still favors deeper fall to 1.1875 support before the consolidation pattern completes. Though, sustained trading above 55 weeks EMA (now at 1.3679) will pave the way for a test on 1.4939 resistance level.

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