Daily Pivots: (S1) 1.2187; (P) 1.2266 (R1) 1.2312; More….
EUR/USD drops to as low as 1.2214 so far but it’s still staying above 1.2205 key near term support. Intraday bias remains neutral at this point. As noted before, break of this important 1.2205 support will confirm rejection by 1.2516 key fibonacci level and trend reversal. IN that case, further decline should be seen back to 1.1553 support next. On the upside, above 1.2354 minor resistance will bring retest of 1.2555 high. Break of 1.2555 will revive the bullish case of up trend resumption and target 100% projection of 1.0569 to 1.2091 from 1.1553 at 1.3075.
In the bigger picture, key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 remains intact despite attempts to break. Hence, rise from 1.0339 medium term bottom is still seen as a corrective move for the moment. Rejection from 1.2516 will maintain long term bearish outlook and keep the case for retesting 1.0039 alive. However, sustained break of 1.2516 will carry larger bullish implication and target 61.8% retracement of 1.6039 to 1.0339 at 1.3862.
