Daily Pivots: (S1) 1.1775; (P) 1.1829; (R1) 1.1869; More…..
EUR/USD’s break of 1.1754 support suggests resumption of fall from 1.2011 and turns intraday bias back to the downside. More importantly, sustained trading below 1.1754 would confirm completion of a head and shoulder top, on bearish divergence condition in 4 hour MACD. Deeper decline should then be seen to 38.2% retracement of 1.0635 to 1.2011 at 1.1485, to correct the rise from 1.6035. For now, risk will stay on the downside as long as 1.1917 resistance holds, in case of recovery.
In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally rise should be seen to cluster resistance at 1.2555 next, (38.2% retracement of 1.6039 to 1.0339 at 1.2516 ). This will remain the favored case as long as 1.1422 resistance turned support holds.
