Daily Pivots: (S1) 1.1329; (P) 1.1384; (R1) 1.1429; More…..
EUR/USD’s sharp decline today and break of 1.1335 minor support suggests that rebound from 1.1176 has completed at 1.1148. The development dampened prior bullish view. Intraday bias turned back to the downside for retesting 1.1176 low first. On the upside, break of 1.1448 will extend the rebound to 1.1514/1569 resistance zone first.
In the bigger picture, current development suggests that a medium term bottom could be formed at 1.1176 already. That came after hitting 61.8% retracement of 1.0339 (2016 low) to 1.2555 (2018 high) at 1.1186, on bullish convergence condition in daily MACD. Further rally could be seen back to 38.2% retracement of 1.2555 to 1.1176 at 1.1703. It’s a bit early to confirm medium term bullish reversal. The structure of the rise from 1.1176 and reaction to 1.1703 fibonacci level will be watched for making an assessment later. But in any case, decisive break of 1.1176 is needed to confirm resumption of down trend. Otherwise, outlook is neutral at worst.
