EUR/USD dipped to 1.0981 last week but quickly recovered. Initial bias is neutral this week first. Upside of recover should be limited below 1.1097 resistance to bring fall resumption. On the downside, break of 1.0981 will extend the decline from 1.1175 to retest 1.0879 low. However, break of 1.1097 will dampen our bearish view and bring stronger rise back to 1.1175.
In the bigger picture, rebound from 1.0879 is seen as a corrective move first. In case of another rise, upside should be limited by 38.2% retracement of 1.2555 to 1.0879 at 1.1519. And, down trend from 1.2555 (2018 high) would resume at a later stage. However, sustained break of 1.1519 will dampen this bearish view and bring stronger rise to 61.8% retracement at 1.1915 next.
In the long term picture, outlook remains bearish for now. EUR/USD is held below decade long trend line that started from 1.6039 (2008 high). It was also rejected by 38.2% retracement of 1.6039 to 1.0339 at 1.2516 before. A break of 1.0039 low will remain in favor as long as 55 month EMA (now at 1.1566) holds.
