Daily Pivots: (S1) 1.1757; (P) 1.1786 (R1) 1.1800; More….
EUR/USD’s fall from 1.1960 extends to as low as 1.1742 so far. With 1.1712 support intact, we’re still treating it as a correction. Intraday bias stays neutral first. On the upside, above 1.1847 minor resistance will turn bias back to the upside for 1.1960 first. Break will resume whole rise from 1.1553 and target 1.2091 high. However, decisive break of 1.1712 will indicate completion of the rise from 1.1553 and turn near term outlook bearish for this support.
In the bigger picture, rise from 1.0339 medium term bottom is seen as a corrective move for the moment. Therefore, in case of another rally, we’d be expect 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 to limit upside and bring reversal. Meanwhile, sustained trading below 55 week EMA (now at 1.1393) will suggest that such medium term rebound is completed and could then bring retest of 1.0339 low.
