Daily Pivots: (S1) 1.1816; (P) 1.1857 (R1) 1.1891; More….
No change in EUR/USD’s outlook. Despite diminishing downside momentum, intraday bias stays on the downside with 1.1938 minor resistance intact. Current should extend to 261.8% projection of 1.2475 to 1.2214 from 1.2413 at 1.1730. As it will then be close to 1.1708 medium term fibonacci level, some support could be seen around 1.1708/30 to bring rebound. Meanwhile, break of 1.1938 should confirm short term bottoming, on bullish convergence condition in 4 hour MACD. And stronger rebound would be seen first.
In the bigger picture, current decline and firm break of 1.2154 support confirms rejection by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. A medium term top should be in place at 1.2555 and deeper decline would be seen back to 38.2% retracement of 1.0339 to 1.2555 at 1.1708 first. With current downside acceleration, there is prospect of hitting 61.8% retracement at 1.1186 before completing the decline. But still, we’ll need to look at the structure before deciding if it’s a corrective or impulsive move.
