Daily Pivots: (S1) 1.2047; (P) 1.2105; (R1) 1.2135; More…
EUR/USD’s correction from 1.2348 short term top continues today. Intraday bias stays on the downside with focus on 1.2058 cluster support (38.2% retracement of 1.1602 to 1.2348 at 1.2063). We’d still expect strong support from there. On the upside, break of 1.2131 minor resistance will turn bias to the upside for rebound. However, sustained break of 1.2058 will target 61.8% retracement at 1.1887.
In the bigger picture, rise from 1.0635 is seen as the third leg of the pattern from 1.0339 (2017 low). Further rally could 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 1.1602 support holds. We’d be alerted to topping sign around 1.2516/55. But sustained break there will carry long term bullish implications.
