Daily Pivots: (S1) 1.2236; (P) 1.2285 (R1) 1.2318; More….
EUR/USD recovers mildly ahead of 1.2238 support. But intraday bias stays on the downside for the moment. Corrective recovery from 1.2154 should have completed with three waves up to 1.2475. Deeper decline is expected to 1.2154 and below. Break there will pave the way to 38.2% retracement of 1.0339 to 1.2555 at 1.1708. This will now be the preferred case as long as 1.2344 resistance holds.
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. Firm break of 1.1553 support will add more medium term bearishness. 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 in medium term.
