Daily Pivots: (S1) 1.2194; (P) 1.2220 (R1) 1.2258; More….
EUR/USD’s fall resumes after brief consolidation and intraday bias is turned to the downside for 1.2154 key support. Decisive break there should confirm the bearish case of medium term reversal. And EUR/USD should then target 161.8% projection of 1.2475 to 1.2214 from 1.2413 at 1.1991. On the upside, though, break of 1.2244 minor resistance will indicate short term bottoming. And even though we’d still expect deeper decline in that case, lengthier consolidation would be seen first.
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. Firm break of 1.2154 support will confirm rejection by this fibonacci level. And in that case, a medium term top is at least formed at 1.2555. EUR/USD should then head back to 38.2% retracement of 1.0339 to 1.2555 at 1.1708 first. We’ll look at the structure and momentum of such decline before decision if it’s an impulsive or corrective move.
