Daily Pivots: (S1) 1.0934; (P) 1.0962 (R1) 1.1001; More….
EUR/USD rises to as high as 1.0492 so far as recent rebound resumed after taking out 1.1020 resistance. Intraday bias is back on the upside for 100% projection of 1.0339 to 1.0828 from 1.0569 at 1.1058. Based on current momentum, this projection level would be taken out. In that case, EUR/USD would target 138.2% projection at 1.1245, which is close to 1.1298 key resistance. For now, rise from 1.0339 is still viewed as a corrective move. Hence we’d expect strong resistance below 1.1245/98 to limit upside and bring reversal. Nonetheless, break of 1.0838 support is needed to indicate short term topping. Otherwise, further rise will remain in favor even in case of retreat.
In the bigger picture, as long as 1.1298 key resistance holds, whole down trend from 1.6039 (2008 high) is still expected to continue. Break of 1.0339 low will send EUR/USD through parity to 61.8% projection of 1.3993 to 1.0461 from 1.1298 at 0.9115. However, considering bullish convergence condition in weekly MACD, break of 1.1298 will indicate long term reversal.
