Daily Pivots: (S1) 1.1104; (P) 1.1133 (R1) 1.1187; More….
EUR/USD’s rally extends to as high as 1.1171 so far and intraday bias remains on the upside. Current rally would target 138.2% projection of 1.0339 to 1.0828 from 1.0569 at 1.1245, which is close to 1.1298 key resistance. For now, we’d be cautious on strong resistance between 1.1245/1298 to limit upside and bring reversal. On the downside, below 1.1081 minor support will turn bias neutral and bring consolidation. But break of 1.0838 support is needed to indicate short term topping. Otherwise, further rise will remain in favor.
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. However, considering bullish convergence condition in weekly MACD, break of 1.1298 will indicate long term reversal. In such case, further rally would be seen back to 1.2042 support turned resistance next.
