Daily Pivots: (S1) 1.5851; (P) 1.5947; (R1) 1.6099; More….
EUR/USD’s rally continues today and reaches as high as 1.6084 so far. Intraday bias remains on the upside and, with 1.5984 support turned resistance broken, further rise should be seen to retest 1.6357 high next. At this point, we’d be cautious on topping around there to bring pull back. On the downside, break of 1.5887 resistance turned support is needed to indicate short term topping. Otherwise, near term outlook will remain bullish in case of retreat.
In the bigger picture, no change in the view that 1.6357 is a medium term top. But the strong rebound ahead of 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313) suggests price actions from 1.6357 are developing into sideway consolidation, rather than a deep correction. The range of 1.5271/6357 is likely set for the consolidation. And we don’t expect a break of the range any time soon. But decisive break of 1.6357 will resume the larger up trend from 1.3624 (2017 low) to 1.6587 (2015 high).
