Daily Pivots: (S1) 1.1602; (P) 1.1615; (R1) 1.1638; More….
EUR/USD’s break of 1.1655 resistance argues that fall from 1.1917 has completed at 1.1467 as a correction. This is supported by the head and shoulder bottom pattern (ls: 1.1540, h: 1.1467, rs: 1.1490). Intraday bias is back on the upside for 1.1727 resistance. Firm break there will bring retest of 1.1917 high. Nevertheless, below 1.1590 minor support will mix up the outlook and turn bias neutral again.
In the bigger picture, considering bearish divergence condition in D MACD, a medium term top is likely in place at 1.1917, just ahead of 1.2 key psychological level. As long as 55 W EMA (now at 1.1345) holds, the up trend from 0.9534 (2022 low) is still in favor to continue. Decisive break of 1.2000 will carry larger bullish implications. However, sustained trading below 55 W EMA will argue that rise from 0.9534 has completed as a three wave corrective bounce, and keep long term outlook bearish.
. Intraday bias is back on the upside for 1.1727 resistance. Firm break there will bring retest of 1.1917 high. Nevertheless, below 1.1590 minor support will mix up the outlook and turn bias neutral again.){kind=link}