Daily Pivots: (S1) 1.1850; (P) 1.1881 (R1) 1.1939; More…
EUR/USD’s strong rebound suggests that pull back from 1.2069 has completed at 1.1822 already. Intraday bias is turned back to the upside for retesting. 1.2069 first. Break there will resume medium term rise from 1.0339 and should target next key fibonacci level at 1.2516. On the downside, below 1.1878 minor support will extend the correction from 1.2069 with another fall. But downside should be contained well above 1.1661 support to bring rally resumption.
In the bigger picture, an important bottom was formed at 1.0339 on bullish convergence condition in weekly MACD. Sustained trading above 55 month EMA (now at 1.1768) will pave the way to key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. While rise from 1.0339 is strong, there is no confirmation that it’s developing into a long term up trend yet. Hence, we’ll be cautious on strong resistance from 1.2516 to limit upside. For now, medium term outlook will remain bullish as long as 1.1295 support holds, in case of pull back.
